USD/CHF grabs bids around 0.9300 ahead of the FOMC minutes

• USD/CHF has scaled above 0.9300 on hawkish Fed officials.
• The 10-year benchmark US Treasury yields have recorded a fresh three-year high at 2.61%.
• The DXY is approaching 100.00 amid improving safe-haven appeal.

The USD/CHF pair is scaling higher amid broader strength in the greenback after the hawkish stance from the Federal Reserve (Fed) policymakers underpinned the latter. The pair recorded a strong upside move after hitting a low of 0.9374 on Tuesday and managed to surpass 0.9300 comfortably.

The comments from Fed Governor Lael Brainard on Tuesday indicated that the Fed is prepared to announce an interest rate hike of 50 basis points (bps). Fed Governor Lael Brainard claimed that strong action will be displayed from the Fed if the indicators of inflation and inflation expectations dictate doing so.

As the economy is aware of the rising tide of inflation so a jumbo interest rate hike by the Fed is likely on the cards. In addition to that, Fed President Mary Daly cited that the labor market is extremely tight amid the achievement of full employment while the Fed is moving on to raise the interest rates.

The proportion of hawkishness from the Fed officials is reflected in the US Treasury yields. The 10-year benchmark US Treasury yields have recorded a fresh three-year high at 2.61%. The benchmark yields are trading 2.43% higher than their previous close on Tuesday.

Meanwhile, the US dollar index (DXY) is heading towards the psychological figure of 100.00, tracing the US Treasury yields and souring market mood. Also, the market participants are underpinning the DXY amid the uncertainty over the release of the Federal Open Market Committee (FOMC) minutes on Wednesday. The FOMC minutes will unfold the methodology behind the decision of a 25 bps interest rate hike in March. While, the Swiss docket will report the Unemployment Rate, which is due on Thursday.