The USD/CHF pair gains ground to around 0.8770 during the Asian session on Wednesday, bolstered by the renewed Greenback demand. The US Federal Reserve (Fed) interest rate decision will take center stage on Wednesday, with no change in rate expected. The attention will shift to the Swiss National Bank (SNB) policy meeting later on Thursday.

Market consensus suggests that the Fed will keep its federal funds rate unchanged at the current range of 4.25% to 4.50%. Traders will focus on the Press Conference and Summary of Economic Projections (SEP), or ‘dot-plot,' for more cues about the future interest rate path and the economic outlook. Any hawkish comments from the Fed officials could lift the Greenback against the Swiss Franc (CHF) in the near term. According to the CME FedWatch Tool, the possibility of a rate reduction at the May meeting has risen to 25% from 18% a month ago.

The Swiss National Bank (SNB) is anticipated to cut its main policy rate by a quarter percentage point on Thursday to 0.25% and hold it there until at least 2026, according to most economists polled by Reuters. "The only significant uncertainty to the view of the SNB holding rates steady at this meeting, for me, stems from a certain dimming of the global growth picture," said Claude Maurer, chief economist of Basel-based BAK Economics.

Meanwhile, US President Donald Trump and Russian President Vladimir Putin on Tuesday agreed to an immediate pause in strikes against energy infrastructure in the Ukraine war. However, Putin declined to sign up for the comprehensive month-long ceasefire that Trump's team recently worked out with Ukrainians in Saudi Arabia. Traders will watch the developments surrounding the full ceasefire between Russia and Ukraine. The escalating geopolitical tensions in the Middle East and the ongoing Russia and Ukraine conflict could boost the safe-haven flows, benefiting the CHF.

Source: Fxstreet