• The US Dollar holds gains above 0.8050 against the CHF with the Fed and the SNB in focus.
• The Fed is expected to cut interest rates on Wednesday and hint at a pause afterwards.
• The SNB is set to keep rates on hold at 0% and play down speculation about negative borrowing costs.

The US Dollar nudges lower against the Swiss Franc on Tuesday, but is holding most of the gains taken over the last few days. The pair is trading at 0.8065 at the time of writing, with downside attempts contained above 0.8050 so far, and all eyes on the Federal Reserve (Fed) and the Swiss National Bank (SNB) monetary policy decisions, due late this week.

A quarter-point interest rate cut by the Fed on Wednesday is practically discounted, and the US Dollar is drawing some support from investors’ expectations that Chairman Jerome Powell will deliver a hawkish message, dampening hopes of further easing in the near-term.

US President Donald Trump has not missed the opportunity of putting some pressure on the central bank, and stated that the new Fed Chair should support interest rate cuts, in an interview with Politico earlier on Tuesday. The impact on the US Dollar, however, has been minimal.

Later on Tuesday, the ADP will release its weekly Employment Change report, and the US Labour Department will follow suit with the delayed JOLTS Job Openings from September and October. The market is bracing for steady 7.2 million openings in both months, slightly below the 7.22 million seen in August.

On Thursday, the SNB will, most likely, leave its benchmark interest rate steady at the current 0% level, as inflation remains at levels near zero. In the Press conference,  SNB Chairman Martin Schlegel is likely to play down the possibility of negative interest rates. Any doubts on that point might send the Swiss Franc tumbling against its main peers.