USD/CHF Softens Near 0.8150 as Markets Await Fed Decision
The USD/CHF pair slipped slightly on Wednesday, trading close to 0.8150 during the early European session. This move came after the pair saw three straight days of gains.
Tensions in the Middle East continue to support the safe-haven Swiss Franc, putting pressure on the US dollar.
Investors are now focused on the outcome of the US Federal Reserve’s policy meeting, which ends later today. The Fed is widely expected to keep interest rates steady within the current range of 4.25%–4.50%.
However, market attention will be on the Fed’s policy statement and Chair Jerome Powell’s press conference for any signs about future rate changes.
Recent US inflation data has led to rising expectations of a rate cut in September, with another possibly following in October. Traders are now pricing in nearly an 80% chance of this happening.
Until the Fed provides more clarity, USD/CHF is likely to move cautiously, with global risk sentiment and US economic signals playing a key role.
Impact: If the Fed signals upcoming rate cuts, USD/CHF could fall further. But if the Fed remains firm or tensions ease, the dollar might regain strength.