USD/CHF sees an upside above 0.9850 on higher expectations for the US Inflation

• USD/CHF is likely to display more gains above 0.9850 as a consensus for US CPI indicates higher print.
• The Fed is expected to maintain the status quo and will raise interest rates by 75 bps.
• Swiss’s light economic calendar compels US CPI to remain the major trigger for this week.

The USD/CHF pair is juggling in a narrow range of 0.9822-0.9834 in the Asian session as investors are shifting their focus on the release of the US Inflation on Wednesday. On a broader note, the asset has remained in the grip of bulls consecutively for the past seven trading sessions. It would be worth keeping an eye on Monday’s high of 0.9843 as a break of the same will strengthen the odds of the maintenance of the winning spree.

A preliminary estimate for the US Consumer Price Index (CPI) is 8.7%, modestly higher than the former release of 8.6%. The Federal Reserve (Fed) has already elevated its interest rates to 1.50-1.75% in its last three monetary policy meetings. Despite that, the price pressures have not shown any sign of exhaustion. Therefore, the odds of a consecutive 75 basis points (bps) interest rate hike by the Fed have bolstered.

Meanwhile, the US dollar index (DXY) is holding itself above 108.20 firmly amid an ongoing risk-off impulse. This has improved the appeal for the safe haven vigorously. On the lower timeframe, the DXY is displaying some exhaustion signals, therefore a minor correction cannot be ruled out.

On the Swiss franc front, the release of the flat jobless rate last week failed to support the Swiss franc bulls. The monthly data remained in line with the estimates and the prior release of 2.2%.