The USD/CHF rises above 1.0060 as the risk-off urge regains prominence

The USD/CHF pair has ended its modest drop from 1.0063 early in the Asian session and continued its ascent. Prior to the risk-on profile losing traction, the asset demonstrated a juggernaut rally to around 1.0063.

After two consecutive days of gains, a moderate decline in the S&P 500 reduced investors' risk appetite and increased the desirability of safe-haven assets. The US dollar index (DXY) oscillates just below the immediate barrier of 113.00 and seems poised to break. In addition, 10-year US Treasury rates have reached a 14-year high of 4.14 percent on increasing wagers on a larger rate hike by the Federal Reserve (Fed).

Regarding the Swiss franc, investors await the publication of the Trade Balance figures. The economic data is anticipated to increase to 3,558M from 3,425M in the previous report.

The road plan offered by the president of the St. Louis Fed Bank, James Bullard, implies that the central bank will remain hawkish for a longer period of time. Fed policymakers anticipate that the central bank will raise interest rates by an extra 75 basis points (bps) when it meets on November 1 and 2, with a further 50 or 75 bps hike probable in December. He noted that the Fed must first determine the appropriate rate level before implementing data reliance.

The release of the Fed's Beige Book indicated that price increases remained elevated, despite some signs of deceleration in certain districts. Consequently, price pressures continue to be a source of worry. The cost of inputs for businesses has increased, although the price of fuel and shipping has decreased. As a result of employers' reluctance to increase payrolls due to anticipation of an economic slowdown, labor demand is mild.