• USD/CHF gains ground to near 0.8575 in Wednesday’s early European session. 
• Reduced bets of a jumbo Fed rate cut in November support the USD ahead of the FOMC Minutes. 
• The escalating Middle East geopolitical tensions might cap the pair’s upside. 

The USD/CHF pair trades on a stronger note to around 0.8575 during the early European session on Wednesday. The firmer US Dollar (USD) amid diminishing odds for more aggressive rate cuts by the Federal Reserve (Fed) underpins the pair. The release of the Federal Open Market Committee (FOMC) Minutes will take center stage later on Wednesday. 

The stronger-than-expected jobs report last Friday lifts the Greenback and had markets tempering the expected scale of upcoming interest rate reductions. Boston Fed President Susan Collins stated that as inflation trends weaken, it is quite likely that the Fed will cut the interest rates further. Meanwhile, Atlanta Fed President Raphael Bostic stated that the jobs market is not showing signs of weakness, adding that despite significant progress on inflation, overall price figures have not yet hit target levels. 

Later this week, traders will shift their attention to the US Consumer Price Index (CPI) inflation report on Thursday, which might offer some hints about the future Fed easing cycle. The headline CPI is expected to see an increase of 2.3% YoY in September, while the core CPI is estimated to see a rise of 3.2% YoY during the same period. Any signs of easing inflation might weigh on the USD and cap the upside for USD/CHF.