USD/CHF trades carefully near 0.8000 as US dollar stays weak
On June 27, during the early Asian market hours, the USD/CHF currency pair stayed close to the 0.8000 mark. This level hasn’t been seen in over 10 years. The US dollar is still under pressure and is finding it hard to rise due to growing concerns about the Federal Reserve and upcoming trade decisions.
One major worry for investors is the possibility that President Trump may change the Federal Reserve Chair soon. This could affect the central bank’s independence and how much trust the market has in it. At the same time, the US dollar index, which measures the value of the dollar compared to other major currencies, is also near a 3.5-year low.
Traders are now waiting for the US inflation data, which is the May PCE Price Index, expected on Friday. This report could give clues about the Fed’s next steps regarding interest rates.
In Switzerland, the Swiss National Bank (SNB) shared its economic update for the second quarter. It expects the country’s economy to grow by 1 to 1.5% in 2025. However, it also warned that global trade problems could hurt Switzerland’s growth. The SNB kept its interest rate at 0% but said it may cut it further if inflation stays low.
Impact:
The weak US dollar could push investors toward safer currencies like the Swiss franc. The upcoming inflation data might affect market direction and possibly move the USD/CHF pair further.