Jakarta, GIC Trade – The Swiss Franc currency strengthened amid fresh fears of a U.S. banking crisis benefiting the CHF and weighing on the USD. 
 
Meanwhile, investors are now looking to U.S. macro data for some boost ahead of the FOMC's crucial decision.
 
The USD/CHF pair extended the overnight decline from around the psychological level of 0.9000, or a nearly two-week high and remained under heavy selling pressure for the second consecutive day on Wednesday. 
 
Concerns that some other U.S. regional lenders are facing solvency issues sparked concerns about a massive banking crisis and increased safe-haven Swiss Franc (CHF) demand. Apart from this, the ongoing decline in the US Dollar (USD) retracement from the three-week highs touched on Tuesday further contributed to the selling tone around the USD/CHF pair. 
 
In addition to this, risk-off asset aversion, along with uncertainty over the Federal Reserve's (Fed) rate hike path and concerns about a US debt default, put US Treasury bond yields under pressure and continue to weigh on the greenback.
 
The U.S. central bank is widely expected to deliver a 25 bps hike at the end of Wednesday's two-day policy meeting. Meanwhile, the US job openings survey (JOLTS) released on Tuesday showed that the ultra-tight US labor market is easing, which could reduce pressure on inflation and allow the Fed to soften its hawkish stance.
 
Nonetheless, CPI in the US is still trending well above the central bank's target range and supports the prospect of further policy tightening. Therefore, the focus will remain on the highly anticipated FOMC decision.
 
In addition, the accompanying monetary policy statement and Fed Chair Jerome Powell's comments at the post-meeting press conference will be scrutinized for clues about the policy outlook. 
 
This, in turn, will affect the short-term USD price dynamics and give a new directional impetus to the USD/CHF pair.
 
Fundamentally, risk asset avoidance and falling US government bond yields have supported the demand for the safe haven currency Swiss Franc. Then how technically, see the following analysis:
 
Technical Analysis

 
USD/CHF on the 1-hour period is trying to move further down, needing to break through the support level at 0.88800 to the next support level at 0.88370. The downward trend can also be seen from the FXBot template, where the CHF figure is higher by 6.3 from the USD figure of 2.7. While the bearish bias is also supported by a sell signal indicated by a red arrow.

This Forex and commodity analysis is a fundamental and technical view used by the author, not a suggestion or a solicitation. To get more information click on the image below.