USD/CHF Pair Consolidates Around 50-Day SMA Amid US Dollar Weakness

The USD/CHF pair has been trading in a narrow range around the 50-day Simple Moving Average (SMA) at 0.8091, as the US Dollar remains on the defensive due to broad Japanese Yen strength.

The US Dollar Index (DXY) has been hovering near a two-week low of 98.90, while the USD/JPY pair fell to a six-and-a-half-month low around 154.40.

Despite escalating tensions in the Middle East and higher oil prices, which are adding to inflation concerns, the Greenback has weakened further, with expectations of Federal Reserve interest rate hikes reinforced by Friday's robust US employment report and elevated energy costs.

The Swiss Franc, however, is struggling to capitalize on US Dollar weakness due to the Swiss National Bank's 0% policy rate and its readiness to intervene in the foreign exchange market to curb any sharp appreciation of the Franc.