USD/CHF remains on the defensive below 0.8350 on weaker US Dollar

• USD/CHF softens to around 0.8335 in Tuesday's early European session. 
• Economic uncertainty and Fed rate cut bets weigh on the US Dollar. 
• SNB's Schlegel warns high market uncertainty is 'poison' for growth. 

The USD/CHF pair remains under selling pressure around 0.8335 during the early European session on Tuesday. The rising bets that the Federal Reserve (Fed) will lower borrowing costs further this year weigh on the Greenback against the Swiss Franc. Later on Tuesday, the Federal Reserve (Fed) officials are set to speak, including Thomas Barkin, Alberto Musalem, Adriana Kugler, Raphael Bostic, Mary C. Daly and Beth M. Hammack. 

Last week, Moody's downgraded its rating for US sovereign credit, citing worries over the country's increasing $36 trillion debt burden. The downgrade underscores growing concerns over fiscal deterioration and tariff-induced distortions under US President Donald Trump and exerts some selling pressure on the Greenback. 

Meanwhile, Fed officials maintain caution and call for more clarity before committing to policy changes, which caps the upside for the USD. The markets are now pricing in a nearly 91.6% chance of rates holding at 4.25%-4.50% in the June meeting and a 65.1% possibility of no change in July, according to the CME FedWatch tool.

Swiss National Bank (SNB) chairman Martin Schlegel said on Monday that financial market uncertainty is currently "very high," noting that at such times, appetite for the safe haven CHF increases. The SNB president wouldn't comment on what might happen next month but emphasized that Switzerland's "interest rate has a large influence on the exchange rate."