USD/CHF ticks down to near 0.8045 on hopes of US-Swiss trade deal

• USD/CHF edges down to near 0.8045 as the Swiss Franc outperforms across the board.
• The US and Switzerland are expected to close a trade deal in two weeks.
• The US Senate advances federal funding to the House of Representatives.

The USD/CHF pair edges lower to near 0.8045 during the late Asian trading session on Tuesday. The Swiss Franc pair faces slight selling pressure as the Swiss Franc (CHF) outperforms its peers on hopes that the United States (US) and Switzerland will reach a trade deal soon.

A Bloomberg report showed that the US and the Swiss economy could announce a trade deal in two weeks, in which Washington is expected to reduce tariffs on imports from Switzerland to 15%. Currently, the US is charging 39% tariffs on imports from the Swiss economy. Lower import duty on Swiss products would improve their competitiveness in the global market.

In the meantime, the US Dollar (USD) trades calmly as the US Senate has passed the government funding bill to the Republican-controlled House of Representatives, where it is expected to be approved by Wednesday, according to Speaker Mike Johnson, Reuters reported.

During the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades flat around 99.60.

Meanwhile, investors await fresh cues on whether the Federal Reserve (Fed) will cut interest rates again this year. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% in the December meeting is 62.4%.

This year, the Fed has already reduced its key borrowing rates by 50 bps amid growing job market concerns, despite inflationary pressures remaining well above the central bank's 2% target.