USD/CHF oscillates in a 0.9330-0.9350 range as the DXY finds a cushion around 99.70

• Fed Waller has advocated a 50 bps interest rate to corner the risks of inflation.

• The Swiss docket will report Real Retail Sales later this month.

The USD/CHF pair is witnessing back and forth moves in a range of 0.9325-0.9356 as the US dollar index (DXY) finds bids near 99.70 after a significant plunge on Wednesday. The asset is gradually approaching its weekly high at 0.9370.

The pair is aiming higher on advancing odds of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed). The Fed is going to dictate its monetary policy in May and a higher US Consumer Price Index (CPI) along with a tight labor market is bolstering the chances of an aggressive hawkish stance for May and for the rest of the year.

Fed Governor Christopher Waller in his speech on Wednesday favored an aggressive interest rate hike going forward but has warned that the aggressiveness should not be mixed with abruptness as it may lead the US economy into recession. An adaptation of an abrupt approach towards the interest rates will reduce the aggregate demand and employment opportunities dramatically, which may pose a serious threat to the US economy.

Going forward, investors will focus on monthly US Retail Sales, which are likely to land at 0.6% against the prior print of 0.3%. While the Swiss docket will report the yearly Real Retail Sales later this month. Earlier, the 12-month Swiss Real Retail Sales were recorded at 12.8%.

USD/CHF