USD/CHF: Bears are firmer below 0.9400, expected Russia-Ukraine truce boost sentiment

• USD/CHF has tumbles after recording a fresh 11-month high at 0.9460.
• A possible ceasefire between Moscow and Kyiv has boosted market sentiment.
• The 15-point peace plan between Russia and Ukraine inculcates a ceasefire stipulation.

The USD/CHF pair has attracted some significant offers after printing a fresh 11-month high at 0.9460. The asset has witnessed a sell-off as the US dollar index (DXY) lost grounds after the Federal Reserve (Fed) revealed March’s monetary policy on Wednesday.

The Fed announced an interest rate hike by 25 basis points (bps) after Fed Chair Jerome Powell and its colleagues decided to increase the interest rates gradually. The Federal Open Market Committee (FOMC) announced seven rate hikes for 2022 to contain the soaring inflation. This brought some offers in the DXY counter as a 25 bps rate hike was already discounted in price by the market. Also, the street was expecting a 50 bps rate hike amid the multi-decade high inflation in the US.

Meanwhile, the risk-on impulse has been underpinned as investors are eyeing a ceasefire between Russia and Ukraine soon. The nations are getting out of their resources and are looking for a truce with a tentative 15-point peace plan that inculcates a ceasefire stipulation and withdrawal of Russian forces from the Ukrainian land. Moreover, Ukraine will cease its NATO membership application and will accept limits on its armed forces, as per Financial Times.

Post the hangover of the Fed’s monetary policy, investors will focus on US Initial Jobless Claims, which will be reported by the Department of Labor on Thursday. A preliminary estimate for the Initial Jobless Claims is 220k lower than the previous print of 227k.