The USD/CHF pair trades on a flat note around 0.9130 during the early European trading hours on Wednesday. Traders await further information from US President Donald Trump on potential trade tariffs. The US Consumer Price Index (CPI) inflation data will be in the spotlight later on Wednesday. Also, the Federal Reserve's (Fed) Raphael Bostic and Christopher Waller are scheduled to speak.

On Tuesday, Fed Chair Jerome Powell emphasized in testimony before the Senate Banking, Housing, and Urban Affairs Committee that the US central bank does not need to be in a hurry to adjust the monetary policy. Powell added that policy is well-positioned to deal with risks and uncertainties.

"The uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025," noted Neil Shearing, group chief economist at Capital Economics.
The US CPI is expected to show an increase of 2.9% YoY in January versus 2.9% prior, while the Core CPI inflation is estimated to ease to 3.1% YoY in January from 3.2% in the previous reading. If the report shows a hotter-than-expected outcome, this could lift the US Dollar (USD) broadly.

On the Swiss front, the escalating geopolitical tensions in the Middle East could boost the Swiss Franc (CHF), a safe-haven currency. Late Tuesday, Israel's Prime Minister Benjamin Netanyahu said that the ceasefire will be over and Israel will resume "intense fighting" in Gaza if Hamas doesn't release "our hostages" by Saturday noon.
USD/CHF flat lines around 0.9130 in Wednesday's early European session.
Fed's Powell said the central bank is still in no rush to lower rates.
The rising Middle East geopolitical tensions could boost the safe-haven flows, benefiting the Swiss Franc(Cay)

Source: Fxstreet