The USD/CHF pair has witnessed a minor rebound after hitting a low of 0.9923 in the Asian session. A rangebound move observed in the asset from Tuesday post the greenback bulls found cushion around 0.9920 after a vertical fall. Considering the price action, the Swiss franc bulls are not done yet and the asset could tumble further to the psychological support of 0.9900.
The upbeat US Retail Sales, released on Tuesday, failed to provide any support to the asset. The US Census Bureau reported the monthly Retail Sales at 0.9% higher than the estimates of 0.7%.
The odds of more 50 basis points (bps) rate hike announcements by the Federal Reserve (Fed) are increasing each day. Fed chair Jerome Powell in his Q&A at Wall Street Journal (WSJ) has stated that inflationary pressures are impacting drastically on the paychecks of the households and inflation needs to be contained sooner. To bring down inflation significantly, the Fed needs to tighten the monetary policy further. The FX domain could witness more than two 50 bps interest rate hikes by the Fed in its next two monetary policy meetings.
On the Swiss franc front, the market participants are focusing on the release of the quarterly Industrial Production. The Swiss Statistics will reveal the Industrial Production later this week. The agency reported Industrial Production previously at 7.3%.
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