USD/CHF struggles around 0.9750 amid DXY’s subdued performance

• USD/CHF is facing barricades around 0.9750 on softer DXY.
• A holiday-truncated week for the Swiss economy will keep investors on the sidelines.
• Fed policymakers are advocating for two more jumbo rate hikes this year.

The USD/CHF pair is displaying back and forth moves in a narrow range of 0.9742-0.9749 in the Asian session. The pair is trading lackluster amid subdued performance from the US dollar index (DXY). On a broader note, the asset is juggling a little wider range of 0.9697-0.9767 from the last week after a sheer downside move from 1.0050, recorded last week.

The DXY has fallen like a house of cards last week after failing to cross the round-level resistance of 105.00. Federal Reserve (Fed) policymakers are expecting that the Fed would announce two more 50 basis points (bps) rate hikes consecutively in June and July. After that, the Fed will follow its traditional approach of elevating interest rates by 25 bps and will maintain a certain interest rate to keep inflation under control.

The necessity of spurting the interest rates is very much high as inflationary pressures amid soaring commodity and fossil fuel prices are impacting the paychecks of the households.

Meanwhile, the Swiss franc is looking stronger against the greenback on the soaring market mood. Risk-sensitive currencies are gaining traction as the safe haven loses appeal. This week, Swiss ZEW Survey Expectations will remain in focus. The catalyst is expected to land at -39.3, better than the prior print of -51.6. Also this week, the Swiss markets will remain closed on Thursday on account of Ascension Day.