USD/CHF retreats to 0.9173, following the Federal Reserve (Fed) induced slump to one-week low, as traders prepare for the Swiss National Bank (SNB) announcements during early Thursday.

Fed Chair Jerome Powell, however, tried to tame the rate cut hopes by saying that officials do not see rate cuts for this year, which in turn allowed breathing space to the greenback bears in the last.

Apart from the Fed announcements, US Treasury Secretary Janet Yellen’s comments also allowed the US Dollar Index to rebound from a seven-week low, by way of challenging the risk appetite, as she ruled out considering “blanket insurance” for bank deposits. 

Against this backdrop, Wall Street closed in the red but yields and the US Dollar Index (DXY) both closed in the red.

Looking ahead, the Swiss National Bank’s (SNB) Interest Rate Decision is the key for the USD/CHF pair traders to watch as the bank is likely to announce a dovish hike considering the latest banking sector fallouts, mainly surrounding Credit Suisse. Should the SNB accepts challenges to the economic outlook from the latest banking sector turmoil, the USD/CHF may pay recent losses.

Apart from the SNB, the second-tier US data relating to activities and jobs will also be important to watch for clear directions.