USD/CHF falls from 0.9100 after US services PMI

• USD/CHF faces selling pressure near 0.9100 while US Dollar falls following weak ISM Services PMI data.
• The Fed's hawkish guidance has reduced rate cut expectations for June.
• Weak Swiss retail sales increase speculation about further rate cuts by the SNB.

The USD/CHF pair faces heavy selling near the 0.9100 round level resistance as the US Institute for Supply Management (ISM) has released weak Services PMI data for March. The services PMI, which represents the services sector that accounts for two-thirds of the US economy, falls to 51.4 versus expectations of 52.7 and the previous reading of 52.6.

The US dollar has faced significant selling pressure following weak US services PMI data. The US Dollar Index (DXY), which tracks the USD against six major currencies, falls to 104.40. Market sentiment improves as S&P 500 adds significant gains after weak open

Meanwhile, market expectations that the Federal Reserve (Fed) will cut interest rates starting at its June meeting have softened considerably. CME's FedWatch tool shows that traders rate the likelihood of the Fed cutting interest rates in June at 54%, up from 70% a week ago. The 10-year US Treasury yield rises to 4.39%.

Markets' prospects of the Fed pivoting toward an interest rate cut have dimmed due to the hawkish stance of Fed policymakers. Atlanta Fed President Raphael Bostic told CNBC He believes the central bank will only cut interest rates once this year as the economy maintains strong momentum.

This week, investors will focus on US March Non-Farm Payrolls (NFP) data, due to be released on Friday.

Regarding the Swiss Franc, the weakness in real retail sales has triggered expectations of further rate cuts by the Swiss National Bank (SNB). Retail sales data, which represents consumer spending, fell a surprising 0.2%, while investors were forecasting 0.4% growth. The worsening cost of living crisis would force SNB policymakers to consider further quantitative easing decisions.