• USD/CHF regains some positive traction amid the emergence of some USD buying on Monday.
• Bets for bigger rate cuts by the Fed and rising Middle East tensions to cap gains for the major.
• Traders might also prefer to wait on the sidelines ahead of the US inflation figures this week. 

The USD/CHF pair attracts some dip-buying during the Asian session on Monday and currently trades around the 0.8660-0.8665 region, just below last week's swing high. 

The US Dollar (USD) kicks off the new week on a positive note in the wake of hawkish comments by the Federal Reserve (Fed) Governor Michelle Bowman on Sunday. Bowman noted that the Fed may not be ready to cut rates in September and still sees upside risks for inflation amid continued strength in the labor market. Apart from this, a generally positive tone around the equity markets undermines the safe-haven Swiss Franc (CHF) and lends some support to the USD/CHF pair. 

That said, geopolitical risks stemming from the ongoing conflicts in the Middle East keep a lid on the market optimism. In fact, the Israel Defense Forces (IDF) intercepted approximately 30 projectiles that were identified as crossing from Lebanon into northern Israel early Monday morning. Furthermore, the Israeli Air Force and Military Intelligence Directorate have been placed on high alert following observations in Western Iran, suggesting that Iran may attack Israel within days.