The USD/CHF pair oscillates in a narrow band below the 0.9100 mark during the Asian session on Tuesday and consolidates its strong gains recorded over the past two days.

Firming expectations that the Federal Reserve (Fed) will more likely skip a rate hike this month continue to weigh on the US Dollar (USD) and act as a headwind for the USD/CHF pair. It is worth recalling that a slew of influential Federal Reserve (Fed) officials recently reaffirmed market expectations for an imminent pause in the US central bank's year-long policy tightening cycle.

The Fed fund futures, however, indicate the possibility of another 25 bps lift-off at the July FOMC meeting. The bets were lifted by surprise rate hikes by other major central banks - the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) - last week, which suggested that the fight against inflation is not over yet. This, in turn, limit the USD losses and lends support to the USD/CHF pair.

Traders also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the release of the latest US consumer inflation figures, due later during the early North American session. The crucial US CPI report will influence the Fed's policy outlook and drive the USD demand, providing some meaningful impetus to the USD/CHF pair ahead of the FOMC policy decision on Wednesday.

In the meantime, a generally positive tone around the equity markets could undermine the safe-haven Swiss Franc (CHF) and offer some support to the USD/CHF pair. That said, a modest downtick in the US Treasury bond yields might hold back traders from positioning for any meaningful USD recovery, suggesting that the major is more likely to extend its subdued/range-bound price action on Tuesday.