USD/CHF corrects to near 0.8940 as USD Index struggles to extend recovery, Fed policy eyed

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• USD/CHF has slipped marginally to near 0.8940, however, the upside seems favored ahead of Fed policy.
• Persistent US core inflation supports the continuation of the policy-tightening spell by the Fed.
• US labor market conditions are still tight as firms are offering higher wages for recruiting fresh talent.

The USD/CHF pair has corrected gradually after failing to sustain above the immediate resistance of 0.8950 in the Tokyo session. The Swiss franc asset is expected to resume its upside journey as the appeal for the US Dollar Index (DXY) is improving ahead of the release of the Federal Reserve’s (Fed) monetary policy.