USD/CHF remains capped below 0.8090 ahead of the FOMC Minutes

• The US Dollar remains trapped within a 70-pip range below 0.8080.
• The cautious market sentiment is failing to boost the USD against the safe-haven CHF.
• Rising odds for further SNB cuts keep Swiss Franc rallies limited.
  

The US Dollar has been trapped within a 70-pip horizontal range against the Swiss Franc during the last week and remains trading without a clear direction on Wednesday after being rejected, again, at the 0.8090 area.

The risk-averse sentiment that is supporting the US Dollar against most of its peers is failing to help with the safe-haven Swissie on Wednesday, and the pair remains practically flat on the daily chart, with investors awaiting the release of the minutes of the latest Fed meeting, due later today, and Fed Chairman Powell's speech on Friday.

The Fed minutes are likely to shed some light on the proportion of the divergences between policymakers. The impact on US Dollar crosses, however, is expected to be limited, as the meeting took place ahead of the US labour and inflation figures that rattled markets, boosting hopes of immediate Fed cuts.

In that sense, Powell's speech at the Fed's Jackson Hole Symposium is expected to be more interesting. Investors will be analysing his words with attention to see whether the soft labour data seen earlier this month has convinced the Fed chief to abandon his "wait-and-see" stance.

In Switzerland, data released earlier this week showed industrial production contracted in the second quarter, casting a shadow over the country's economic outlook, with the impact of US tariffs looming, which might force the SNB to cut rates into negative levels.