The USD/CHF Currency Pair Advances to a 54-Week High of 0.9470 Ahead of SNB Jordan's Speech

On Tuesday, the USD/CHF pair extended its five-day winning streak, as unfavorable market sentiment appeals to safe-haven assets. The asset is trading near Monday's high of 0.9454 and is expected to extend gains following the former's breach.

Rising expectations of a big rate hike by the Federal Reserve (Fed) are driving the US dollar index higher (DXY). The DXY is approaching 101.00, as the Fed is left with little choice but to accelerate interest rate hikes. The greenback has seen an adrenaline rush following Federal Open Market Committee (FOMC) member James Bullard's hawkish comments. Bullard believes interest rates will be 3.5 percent this year and that the door is open for a 75 basis point (bps) rate as well.

Further advice will come from Fed head Jerome Powell's upcoming speech on Thursday. The Fed's Powell's dictates will establish a clear route to the lowest rates reverting to neutral rates.

On the Swiss calendar, investors are focusing on Tuesday's speech by Swiss National Bank (SNB) Chairman Thomas J. Jordan, which will provide insight into the Swiss National Bank's (SNB) expected June monetary policy action. The SNB has kept interest rates at their lowest level in 13 years, at -0.75 percent, despite inflation printing at a 13-year high of 2.2 percent. Switzerland's inflation rate has recently increased, owing to higher commodities and fossil fuel prices.

USD/CHF