USD/CHF finds temporary support above 0.8500 ahead of Fed minutes

• USD/CHF finds a temporary cushion near 0.8520 with investors focusing on the FOMC minutes.
• Market sentiment seems quiet with FOMC minutes in focus.
• Fed Powell may not provide a preset rate cut path in his speech at the Jackson Hole Symposium.

The USD/CHF pair discovers an interim support near 0.8520 in Wednesday's European session after a three-day losing streak. The Swiss Franc asset finds cushion as the US Dollar (USD) edges higher after posting a fresh seven-month low. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, rises slightly to near 101.50 from 101.31.

Market sentiment remains quiet, with investors focusing on the Federal Open Market Committee (FOMC) minutes for the July policy meeting, which will be published at 18:00 GMT. S&P 500 futures have posted any gains in the European session. 10-year US Treasury yields remain subdued near 3.81%.

Investors will look for fresh cues about how much the Federal Reserve (Fed) will cut interest rates in September and by the year-end. In the July policy meeting, the Fed left interest rates unchanged in the range of 5.25%-5.50% but opened doors for rate cuts in September.

This week, the Jackson Hole Symposium will be the crucial event for the US Dollar as Fed Chair Jerome Powell will provide fresh interest rate guidance. Fed Powell might refrain from committing a pre-defined rate-cut path but is expected to highlight that risks have now emerged in both aspects of the dual mandate (inflation and employment).

Meanwhile, the Swiss currency will be guided by market speculation for the Swiss National Bank's (SNB) interest rate path this year amid an absence of top-tier economic events. Currently, financial markets expect that the SNB could cut interest rates again in September as price pressures continue to abate.