USD/CHF oversteps 0.9900 on firmer DXY, US inflation in focus

• USD/CHF is eyeing an establishment above 0.9900 as DXY has strengthened on rate hike expectations.
• The asset is witnessing a bullish open drive session, which may keep bulls reinforced.
• The in-line Unemployment Rate and Swiss CPI have failed to support the Swiss franc.

The USD/CHF pair is scaling higher in the early Asian session. The asset has witnessed a bullish open drive session as the pair is advancing higher right from its opening at 0.9885. A firmer rally in the asset banks upon strengthening the US dollar index (DXY).

The DXY is marching north on rising odds of a consecutive jumbo rate hike by the Federal Reserve (Fed) in June.  The US Bureau of Labor Statistics reported the US Nonfarm Payrolls (NFP) at 428k, significantly higher than the expectations. Higher-than-expected job additions by the US administration are signaling an extremely tight labor market in the US, which has bolstered the chances of a rate hike consecutively. The tight labor market and multi-decade high inflation levels are empowering one more 50 basis points (bps) interest rate hike expectations.

Meanwhile, the Swiss franc is displaying underperformance on releasing a flat Unemployment Rate last week. The Unemployment Rate landed at 2.2%, in line with the forecasts and prior print. Also, the yearly Swiss inflation landed at 2.5% last week, similar to the street expectations. The catalysts are not advocating for a rate hike by the Swiss National Bank (SNB).

Going forward, the mega event will be the release of US inflation, which is scheduled on Wednesday. The US Consumer Price Index (CPI) carries a preliminary estimate of 8.1%, lower than the prior print of 8.5%.