USD/CHF finds pullback near 0.9300 on cautious market mood, Fed Powell’s speech eyed

• USD/CHF has found bids near 0.9300 as DXY strengthens on a downbeat market tone.
• NATO aims a ceasefire between Russia and Ukraine through a diplomatic route.
• SNB will dictate their interest rate decision this week.

The USD/CHF pair has witnessed some significant bids near 0.9300 amid a rebound in the appeal for the safe-haven assets. The market participants are uncertain over the meeting between US President Joe Biden and other NATO allies, which is due on Thursday.

The central agenda behind the meeting is to bring a ceasefire between Russian rebels and Ukraine defenders by a diplomatic route. However, the NATO members could impose additional sanctions on Russia as the former have urged a truce multiple times to Moscow. This has soured the market sentiment significantly and investors have underpinned the greenback against the Swiss franc.

On the dollar front, the US dollar index (DXY) has climbed near 98.50 on extended bets over seven rate hikes in 2022. An aggressive hawkish stance from the Federal Reserve (Fed)’s policymakers has shifted the liquidity into the greenback. Fed’s Chair Jerome Powell’s speech on Wednesday is likely to put forward the path of six more interest rate hikes, which may shift the greenback in a better position and will eventually diminish the demand for risk-perceived assets. The 10-year US Treasury yields are hovering around 2.95% ahead of Powell’s speech.

Going forward, investors will keep an eye on the interest rate decision by the Swiss National Bank (SNB), which is due on Thursday. Currently, Swiss interest rates are holding at -0.75%.