USD/CHF remains firm above 0.8800, eyes on Russia-Ukraine tensions

• USD/CHF trades stronger to near 0.8835 in Tuesday's early European session. 
• Fed easing bets pared on Trump policy outlook, and strong US economic data. 
• Geopolitical risks might boost the Swiss Franc and create a headwind for the pair. 

The USD/CHF pair edges higher to around 0.8835 during the early European session on Tuesday, bolstered by the firmer Greenback. Switzerland's October Trade Balance will be released later on Tuesday. Also, the Federal Reserve's (Fed) Jeffrey Schmid is set to speak. 

The strong US economic data and potential inflation from proposed tariffs have fuelled speculation that the Fed would slow the path of rate reductions, supporting the US Dollar (USD). Additionally, the cautious remarks from Fed Chair Jerome Powell contribute to the USD's upside. Powell emphasized that the robust economic growth, solid job market, and inflation that remains above its 2% target mean the US central bank does not need to rush to lower interest rates.

Investors await comments from the Fed officials for further cues about the US interest rate trajectory. Markets have pared bets for a 25 basis points (bps) interest-rate cut at the December meeting to less than 59%, down from 62% a day earlier, according to CME FedWatch.

Nonetheless, heightened concerns about the Russia-Ukraine conflict and the ongoing geopolitical tensions in the Middle East could boost the safe-haven flows, benefiting the Swiss Franc. Joe Biden has allowed Ukraine to strike inside Russia with long-range US missiles for the first time, according to CNN News on Sunday. US sources said that Ukraine plans to conduct its first long-range attacks in the coming days, while Russia vowed to retaliate to what it called a "radical change" in the war.