USD/CHF fluctuates in tight range above 0.9200 ahead of FOMC Minutes

• USD/CHF is moving sideways after posting modest gains on Tuesday.
• US Dollar Index stays in a consolidation phase near multi-month highs.
• FOMC will release the minutes of June meeting later in the day.

Supported by the broad-based USD strength, the USD/CHF pair closed modestly higher on Tuesday but struggled to preserve its bullish momentum. As of writing, the pair was virtually unchanged on a daily basis at 0.9238.

On Tuesday, the ISM Services PMI report revealed that the business activity in the service sector expanded at a softer pace than expected. More importantly, the underlying details of the report revealed that the underlying price pressures remained high.

In the meantime, Wall Street's main indexes turned south and helped the greenback gather strength as a safe haven. After rising more than 0.3%, however, the US Dollar Index seems to have gone into a consolidation phase on Wednesday and was last seen moving sideways around 92.50, where it was flat on the day.

Eyes on FOMC Minutes

There won't be any high-tier macroeconomic data releases featured in the US economic docket on Wednesday. Investors will pay close attention to the FOMC's June meeting minutes, which is scheduled to be released at 1800 GMT. 

Previewing this publication, "the minutes are unlikely to provide specifics of economic conditions or timing of the coming policy shift," said FXStreet senior analyst Joseph Trevisani. "The Fed’s annual Jackson Hole, Wyoming policy symposium may be a more congenial atmosphere for the Fed officials to admit and explore the conditions for a bond taper but the minutes of the June FOMC could contain the official agenda." 

FOMC Minutes June Preview: A view of the Jackson Hole agenda

Technical levels to watch for