The USD/CHF pair now seems to have entered a bullish consolidation phase and oscillated in a range through the early European session. The pair was last seen trading around the 0.9210-15 region, just below two-month tops. A combination of diverging forces failed to assist the USD/CHF pair to capitalize on last week's hawkish FOMC-inspired strong move up, instead led to range-bound price action on Monday. The prevalent risk-off mood – as depicted by a weaker trading sentiment around the global equity markets – underpinned the safe-haven Swiss franc.

On the other hand, the ongoing sharp decline in the US Treasury bond yields kept the US dollar bulls on the defensive and further collaborated towards capping the gains for the USD/CHF pair. That said, the Fed's surprise hawkish shift continued acting as a tailwind for the greenback and should help limit any meaningful pullback for the pair. Meanwhile, technical indicators on short-term charts are already flashing overbought conditions. This seemed to be another factor that held traders from placing any aggressive bullish bets. Nevertheless, the fundamental backdrop supports prospects for an extension of the recent sharp bounce from multi-month lows, around the 0.8925 region touched earlier this month.