USD/CHF consolidates modest losses below 0.9050

As a result of the US debt-ceiling deal revealed on Sunday, interest in the US dollar declines, the USD/CHF trades for a second straight trading day with losses. This has fueled a bullish market sentiment that is hated by the safe-haven dollar, the greenback. Additionally, the low volume in the markets appears to be hurting the pair as the US celebrates Memorial Day. Investors will be looking to Swiss Q1 GDP statistics on Tuesday.

On Sunday, an announcement was made by US President Joe Biden and Republican House Speaker Kevin McCarthy stating that they have come to a deal on extending the debt ceiling. The proposal suggests allowing the government to borrow money without increasing the limit, temporarily suspending it until 2025. However, the deal still needs approval from Congress, although officials are optimistic about its passage.

This news had a positive impact on Wall Street futures, and put downward pressure on the US Dollar. On Tuesday, Swiss Statistics will release Gross Domestic Product (GDP) data from Q1. This is expected to have expanded at a weak annualized rate of 0.6% from its previous 0.8%.