USD/CHF tests intra-week highs at 0.8070 on generalised Dollar strength

• The US Dollar is outperforming its peers on Wednesday despite concerns about the Fed's independence.
• Governor Cook announced a lawsuit against Trump as a reaction to a presidential order to fire her
• On Thursday, the Swiss Q2 GDP reading is likely to set the near-term CHF direction.

The US Dollar is outperforming its rivals on Wednesday, unfazed by US President Trump's attempts to influence the Federal Reserve's decisions. The USD/CHF pair appreciates nearly 0.4% on the day so far, to test intra-week highs at 0.8070.

Trump's unprecedented attacks on the Federal Reserve's independence have failed to dent the US Dollar's strength. The US President attempted to fire Governor Cook, aiming to change the balance of the bank's monetary policy committee to the dovish side by replacing her with a more dovish-leaning nominee.

Cook refused to resign, as she affirmed, the president has no authority to fire her, and announced a lawsuit against the president, which is likely to extend the conflict.

In the macroeconomic domain, US Durable Goods Orders and the Conference Board's Consumer Sentiment index beat expectations, easing concerns about a sharp economic slowdown in the third quarter and providing additional support to the US Dollar.

In Switzerland, the focus is on the second quarter's Gross Domestic Product release, due on Thursday, which is expected to show some deceleration. These figures will be read from the perspective of SNB's moneary policy and, in that sense, the risk is on a weaker-than-expected reading that might boost hopes of further monetary easing and send the Swiss Franc lower.