USD/CHF Moves Lower as Traders Wait for Fed Decision
The USD/CHF pair dropped slightly on Wednesday morning, reaching around 0.8055 during early European hours. Traders are waiting for the Federal Reserve’s interest rate decision, expected later today. Most experts believe the Fed will keep interest rates unchanged, but some still think a rate cut could happen soon. Right now, markets are showing a 60%+ chance of a rate cut in September.
The U.S. dollar weakened after trade talks between the U.S. and China ended without major progress. However, talks will continue, and decisions on tariffs are expected before mid-August. This uncertainty added pressure on the dollar and helped support the safe-haven Swiss franc.
At the same time, traders are watching the early release of U.S. GDP data for Q2, which is expected to show 2.4% annual growth. This would be a good sign after the economy shrank by 0.5% in Q1. If the growth is stronger than expected, the dollar might recover some strength.
This update comes at a crucial time for the Forex market, with big focus on USD trends, interest rate policy, and economic recovery.
Impact:
If the Fed holds rates steady, the USD/CHF pair might stay weak. A strong GDP report could possibly support the dollar, but trade worries could keep the Swiss franc strong.