USD/CHF consolidates gains above 0.9220 amid steady USD

USD/CHF is in consolidation mode after a stellar performance in the previous week.
The US dollar index remains above the 92.20 mark.
CHF loses grounds on SNB’s dovish outlook despite higher inflation expectations.

USD/CHF remains muted in the initial Asian trading hours on Monday. The pair posted a stellar performance in the previous week while touching the multi-month highs near 0.9240.

At the time of writing, USD/CHF is trading at 0.9222, down 0.01% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the basket of six major currencies, remains strong at 92.24. The gains in the USD traced back to the Fed’s surprise action in which the central bank raised its inflation forecast and two rate hikes in 2023.

Meanwhile, the US authorities have extended travel restrictions at Canada and Mexico land borders until at least July 21.

In addition to that, the US wants to finalize the nuclear deal with Iran before the new hardline president takes over charge. Western officials have warned that negotiations to revive its nuclear deal could not continue indefinitely after Iran announced a break following the elections in the country. This, in turn, heightened the market volatility, which benefited the US dollar.

Market participants remained unfazed by the much anticipated move of the Swiss National Bank (SNB), which kept its ultra accommodative monetary policy unchanged.

As for now, the dynamics around the US dollar continue to influence the pair’s performance for the time being.