The USD/CHF is trading around 0.7820 during the early European session, gaining strength as the Federal Reserve is expected to keep interest rates unchanged but hawkish at the upcoming March 17–18 meeting.

🔎 Key Drivers
🔹 Stronger US Dollar
The United States Dollar is gaining as rising oil prices increase concerns about inflation in the US. Higher inflation could force the Fed to keep interest rates higher for longer.

🔹 Middle East Tensions
Geopolitical tensions are increasing after Iran intensified operations near the Strait of Hormuz, one of the world’s most important oil supply routes.
Higher oil prices often increase inflation pressure globally.

🔹 Safe-Haven Demand
The Swiss Franc is considered a safe-haven currency, meaning it can strengthen during geopolitical uncertainty.

📅 Important Data to Watch (Friday)
📊 US Personal Consumption Expenditures Price Index
📊 US Gross Domestic Product
These reports will give traders more clues about US inflation and economic strength, which could influence the next moves for USD pairs.

📈 Trading Outlook
Short-term bias: Bullish above 0.7800
Resistance: 0.7850 – 0.7900
Support: 0.7770 – 0.7730
✔ Strong US data → USD/CHF could continue rising
✔ Weak inflation data → USD may weaken