USD/CHF juggles around 0.9720 as investors await SNB’s Jordan speech

• USD/CHF oscillates in a narrow range of 0.9717-0.9723 ahead of SBN’s Jordan and US Michigan CSI.
• SNB’s Jordan could sound hawkish in his speech amid higher inflation.
• The uncertainty over the rate hike announcement by the Fed will dominate the Fx domain.

A back and forth move show has been displayed by the USD/CHF pair in the Asian session. The asset is consolidating in the six-pip range ahead of the speech from the Swiss National Bank (SNB)’s Thomas J. Jordan, which is due on Friday.

The speech from the SNB’s Jordan will dictate the likely monetary policy action in June. The SNB has been sticking to its ultra-loose monetary policy for a prolonged period. However, investors could find a surprise this time as SNB policymakers could sound a little hawkish this time. The Swiss Consumer Price Index (CPI) has climbed above the 13-year high at 2.2%, well above the targeted inflation rate of 2%. Although a neutral stance will be the announcement, guidance could be a little aggressive.

Meanwhile, the US dollar index (DXY) is facing a time correction after a firmer upside journey. The DXY is balancing around 103.65 and is waiting for a trigger to head the upside direction. The uncertainty over the announcement of an interest rate decision by the Federal Reserve (Fed) next week is going to dictate the prices ahead. Investors should brace for a jumbo rate hike as the Fed is cautious over soaring inflation. In today’s session, investors will focus on the Michigan Consumer Sentiment Index (CSI), which is likely to land at 62 against the prior print of 65.7.