USD/CHF Near 3-Week Low on Fed Cut Hopes
The USD/CHF pair slipped to around 0.8060 in Monday’s Asian session, showing weakness in the U.S. dollar. The greenback is close to its lowest level in almost three weeks as traders strongly expect the Federal Reserve to cut interest rates in September. This outlook is pressuring the dollar across global markets.
The U.S. Dollar Index (DXY), which measures the dollar against major currencies, is now steady near 97.80. According to market data, the chance of a Fed rate cut in September is above 80%. This comes after recent U.S. labor market numbers showed signs of cooling, which added to expectations of easier monetary policy.
Investors are now focused on the Jackson Hole Symposium scheduled for August 21–23. This event is important because Fed officials often give key signals about the future of U.S. interest rates.
At the same time, political developments are also in focus. A meeting between U.S. President Donald Trump, Ukraine’s President Volodymyr Zelenskyy, and NATO leaders in Washington could shape market sentiment. Traders are watching to see if Ukraine is open to peace talks after Russia’s proposal.
In Switzerland, attention is on second-quarter industrial production data due later today. The last quarter showed strong growth of 8.5% year-on-year, making the Swiss franc more attractive as a safe-haven currency.
Impact:
USD/CHF movement might depend on Fed signals at Jackson Hole. Peace talk progress could lift risk appetite, while Swiss industrial data may strengthen the franc further.
