The USD/CHF pair has shown a corrective move to near 0.9180 in the early Tokyo session. The Swiss Franc asset has witnessed selling pressure led by a gradual decline in the US Dollar Index (DXY) and rising expectations for more rates by the Swiss National Bank (SNB).

In recent sessions, the collapse of Credit Suisse kept the Swiss Franc on the back foot as the currency lost its charm of safe-haven. It seems that hawkish SNB bets are aiming to retrieve its glory.

The release of the SNB Quarterly Bulletin on Wednesday confirmed that SNB Chairman Thomas J. Jordan will hike rates further to ensure price stability in the Swiss region. The SNB Quarterly Bulletin also showed that inflation escalated to 3.4% in February and the majority of the contribution to rising Swiss inflation is coming from domestic goods.

Going forward, Friday’s Real Retail Sales (Feb) data will be keenly watched. The annual retail sales data is expected to expand by 1.9% against a contraction of 2.2%, which would cement further scalability in the inflationary pressures.

Meanwhile, the USD Index has turned sideways below 102.70. The asset had a roller-coaster ride on Wednesday amid deepening expectations of a decline in the retail demand in the United States ahead. The National Retail Federation (NRF) said on Wednesday that fears of a recession and tremors in the banking industry cast a shadow over a recovery in consumer spending, as reported by Reuters. The NRF is expecting a growth in retail demand in the 4-6% range, lower than expansion by 7% recorded in 2022.