USD/CHF consolidates as traders await US inflation readings to confirm Fed hawkish bias

• USD/CHF is stable in low volatility ahead of the US inflation data. 
• Federal Reserve sentiment could well kick into an otherwise risk-friendly environment. 

At 0.9242, USD/CHF is flat on the day as traders get ready for the US Consumer Price Index that will be released in the US morning, expected to seal the deal for March lift-off at the Federal Reserve.  USD/CHF has traded between a tight consolidative range of between 0.9240 and 0.9247 so far in Asia. 

Improved risk sentiment has enabled global stocks to firm on Wednesday. The Dow Jones Industrial Average (DJI) added 0.86% to end at 35,768.06 points, while the S&P 500 rallied 1.45% to 4,587.18. The Nasdaq Composite (IXIC) climbed 2.08% to 14,490.37. MSCI's broadest index of Asia-Pacific shares outside Japan was 1.8% higher and moved into a more than two-week high. Additionally, positive news headlines over recent days suggesting tensions between the West and Russia over Ukraine have been dialled down has eased flows in the safe-havens, such as the Swiss franc.

US CPI data in focus

At this juncture, the markets will scrutinise the US inflation print, in anticipation of a strong number that would be expected to lift sentiment around Federal Reserve policy tightening. Markets are pricing in more than a 70% chance of a 25 basis point hike and a nearly 30% chance for a 50 basis point hike when U.S. policymakers meet in March, according to CME's FedWatch Tool. this comes a the markets are in anticipation that the US Consumer Price Index will have risen by over 7% year-over-year in January.