The USD/CHF pair held steady near two-month tops through the first half of the European session, with bulls now awaiting a sustained move beyond the 0.9200 mark. The pair edged higher for the third consecutive session on Friday and seems all set to build on this week's strong positive momentum, triggered by the Fed's sudden hawkish turn. It is worth recalling that the Fed stunned investors on Wednesday and brought forward its projections for the first post-pandemic interest rate hikes.
The so-called dot plot pointed to two rate hikes by the end of 2023 as against March's projection for no increase until 2024. This, in turn, continued acting as a tailwind for the US dollar and provided a modest lift to the USD/CHF pair. That said, sliding US Treasury bond yields held the USD bulls from placing fresh bets and capped gains.On the other hand, the prevalent cautious mood around the equity markets extended some support to the safe-haven Swiss franc. This, along with slightly overbought conditions on short-term charts, might keep a lid on any meaningful upside for the USD/CHF pair. This, in turn, warrants some consolidation before the next leg up.