USD/CHF consolidates above 0.7900, remains close to multi-year low set on Tuesday

• USD/CHF struggles to gain any meaningful traction on Wednesday amid mixed cues.

• A modest USD uptick and a positive risk tone act as a headwind for the currency pair.

• Fed rate cut bets cap gains for the USD and spot prices amid the SNB’s hawkish signal.

The USD/CHF pair consolidates in a narrow band above the 0.7900 mark during the Asian session on Wednesday and remains close to its lowest level since September 2011 touched the previous day.

The US Dollar (USD) ticks higher and looks to build on Tuesday's modest bounce from a three-and-a-half-year low. Apart from this, a positive risk tone is seen underpinning the Swiss Franc's (CHF) relative safe-haven status and holding back traders from placing aggressive bearish bets around the USD/CHF pair.

Any meaningful USD appreciation, however, seems elusive in the wake of the growing acceptance that the Federal Reserve (Fed) would resume its rate-cutting cycle in the near future. Moreover, concerns about the worsening US fiscal condition should cap the attempted USD recovery and the USD/CHF pair.

Meanwhile, the Swiss National Bank (SNB) hawkish signal disappointed investors expecting that rates might return to negative territory this year. This favors the CHF bulls, which, along with a bearish USD fundamental backdrop, suggests that the path of least resistance for the USD/CHF pair is to the downside.

Traders now look forward to the release of the US ADP report on private-sector employment for some impetus later during the North American session. The focus, however, will remain glued to the US Nonfarm Payrolls (NFP) report on Thursday, which will drive the USD and the USD/CHF pair in the near term.