The USD/CHF pair oscillates in a narrow trading band, around the 0.8575-0.8580 region through the Asian session on Wednesday and consolidates its recent downfall to the lowest level since January 2015 touched the previous day.

The prevailing risk-on environment is seen undermining demand for the safe-haven Swiss Franc (CHF) and turning out to be a key factor lending some support to the USD/CHF pair. The weaker economic data from China this week fueled speculations about the possibility of more stimulus measures from the government. This, to some extent, helps ease concerns over slowing economic growth in China and boosts investors' confidence, which led to the recent rally across the global equity markets.

That said, the underlying bearish sentiment surrounding the US Dollar (USD) fails to assist the USD/CHF pair to attract any meaningful buying and acts as a headwind. In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, remains well within the striking distance of its lowest level since April 2022 touched on Tuesday. Investors seem convinced that the Federal Reserve (Fed) will soften its hawkish stance and keep rates steady after the expected 25 bps lift-off in July.

Source : Fxstreet