• USD/CHF bounces up from 15-year lows at 0.7600, hitting session highs past 0.7680.
• Investors are trimming US Dollar shorts on Wednesday, ahead of the Fed's decision.
• The Swiss ZEW Survey highlights a further deterioration of the economic expectations.

The US Dollar regains lost ground heading into the Federal Reserve’s (Fed) monetary policy decision on Wednesday. The USD/CHF has bounced up to levels above 0.7680 at the time of writing, after hitting a 15-year low in the 0.7600 area on Tuesday.

The Greenback is showing a somewhat firmer tone on Wednesday, as investors trim US Dollar short positions in anticipation of the Fed meeting's outcome. The market is practically fully pricing steady interest rates, with Chairman Powell likely to maintain a cautious tone on further rate cuts.

The decision, however, is likely to be overshadowed by the continuous political pressures on the bank to accelerate its easing cycle, as well as the efforts to oust Governor Lisa Cook and the criminal investigation against Chairman Powell, over his testimony about the renovation of the Fed building.

In Switzerland, the ZEW Survey, which analyses expectations for the Swiss economy, deteriorated to -4.7 in January from 6.2 in December and 12.20 in November, adding negative pressure on the Swiss Franc.

US economic data released on Tuesday contributed to undermining confidence in the US Dollar. The Conference Board’s Consumer Sentiment Index fell to an 11-year low on concerns about jobs and higher prices, while the ADP weekly report revealed that net employment creation slowed down for the third consecutive time in the week of January 3.