• USD/CHF moves sideways ahead of the interest rate decision by the Fed.
• The Swiss Franc may appreciate due to the hawkish sentiment surrounding the SNB.
• CME FedWatch Tool suggests the probability of a Fed rate cut in September has decreased to 52%.

USD/CHF moves sideways with low liquidity, trading around 0.8970 during the early European session on Wednesday. The Swiss Franc (CHF) receives support against the US Dollar (USD) as the Swiss National Bank (SNB) is unlikely to implement an interest rate cut in June. Previously, SNB Chairman Thomas J. Jordan warned of minor upside risks to inflation expectations.

Traders are anticipating the SNB Financial Stability Report on Thursday, which will provide an assessment of the banking sector's stability and the financial market infrastructure. Additionally, Producer and Import Prices will also be eyed.

The US Dollar (USD) remains stable ahead of the Federal Reserve’s (Fed) policy decision on Wednesday. The Fed is anticipated to keep interest rates steady in the range of 5.25%-5.50% as it aims to curb inflation toward its 2% target.

The robust US jobs data for May has reduced the odds of the Fed interest rate cut in September. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in September by at least 25 basis points has decreased to 52%, down from 67% a week earlier.

Investors will also observe key US inflation data, which is expected later in the North American session. The US headline and core CPI figures for May are estimated to show year-over-year increases of 3.4% and 3.5%, respectively.