The USD/CHF pair extends its recovery to around 0.9030 during the early European session on Tuesday, bolstered by a firmer US Dollar (USD). Investors brace for the release of the NY Empire State Manufacturing Index for February, which will be published later on Tuesday. Also, the Federal Reserve's (Fed) Mary Daly is scheduled to speak later in the day.

Last week's data showed U.S. consumer prices climbed at the highest pace in almost 18 months in January, highlighting the Fed's message that it was not in a hurry to continue reducing rates despite rising economic uncertainties. This, in turn, continues to underpin the Greenback in the near term. "An extended pause during the first half of this year looks justified and will give the Fed time to assess the impact of trade measures on inflation," said ANZ strategists.

Israeli warplanes launched airstrikes on the villages of Tayr Harfa and Aaichiyehin in the Jezzine district on Monday night, as well as two explosions in the border town of Odaisseh in the Marjayoun district, breaking the ceasefire in southern Lebanon just before it is due to leave the area, according to Anadolu Agency.

Investors will closely monitor the development surrounding geopolitical tensions in the Middle East. Any signs of escalation in the region could boost the safe-haven currency like the Swiss Franc (CHF) and create a headwind for the pair.
Source: FXStreet