The USD/CHF pair attracted some buyers around 0.8810 during the early European session on Tuesday. A broadly stronger US Dollar (USD) extended some support to the pair. Federal Reserve (Fed) officials Christopher Waller, Thomas Barkin, Neel Kashkari, and Patrick Harker are due to speak later in the day. The US Consumer Price Index (CPI), and Producer Price Index (PPI) will be in the spotlight on Wednesday.

Trump's proposed policies including tax cuts, trade tariffs, and deficit spending could trigger a fresh wave of inflation and could force the US Fed to slow down the pace of interest rate cuts. This, in turn, could support the greenback against the Swiss Franc (CHF).

The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, rose to a fresh four-month high near 105.70. Traders will turn their attention to the US October CPI inflation data on Wednesday, which may provide some clues on the Fed's future interest rate path.

On the Swiss side, Swiss National Bank (SNB) Vice Chairman Antoine Martin said on Monday that the central bank will not cut interest rates further in December. "There is no point for the central bank to lock itself into a forward-looking communication, because between now and the next decision, there could be a change in conditions that make the current communication invalid," Martin said. Markets expect the SNB to cut at least 25 basis points (bps) from the current 1% level at its next meeting on December 12.

Source: FXStreet