Due to the strength of the US dollar, USD/CHF continues to rise, approaching 0.7970.
According to Fed's Daly, the goal of the interest rate drop was to support the labor market.
Investors are waiting for the SNB's monetary policy decision and Fed Powell's speech.
Monday's late Asian trading session saw the USD/CHF pair reach a new weekly high of 0.7970. As the US dollar (USD) beats its peers in recent days following the Federal Reserve's (Fed) monetary policy statement on Wednesday, the Swiss franc pair gains momentum.
The US Dollar Index (DXY), which measures the value of the US dollar relative to six other major currencies, is trading close to a new weekly high of 97.80 at the time of writing.
Last 7 Days' US Dollar Price
The Fed's monetary policy statement, which saw it cut interest rates by 25 basis points (bps) to 4.00%-4.25% in the face of a deteriorating US job market, caused the US dollar to spike higher. Additionally, the Fed hinted at many interest rate reductions for the rest of the year.
Mary Daly, president of the San Francisco Fed Bank, also admitted on Friday that policymakers initiated the monetary-easing program as a result of waning employment demand. In light of the US economy's noticeable softness over the previous year, Daly stated that the Fed's decision to lower interest rates was made in an effort to "attempt and bolster a weakening labor market."
Fed Chair Jerome Powell's remarks at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon on Tuesday will be the main focus of investors. More clues regarding the Fed's stance for monetary policy would be appreciated by investors.
The Swiss National Bank's (SNB) interest rate announcement on Thursday will be the main catalyst for the Swiss franc (CHF) this week. As the economy struggles to drive inflation upward, the SNB is anticipated to keep interest rates at zero. Cues regarding whether the SNB could drive interest rates into negative territory in the near future would be of great interest to investors.
According to Fed's Daly, the goal of the interest rate drop was to support the labor market.
Investors are waiting for the SNB's monetary policy decision and Fed Powell's speech.
Monday's late Asian trading session saw the USD/CHF pair reach a new weekly high of 0.7970. As the US dollar (USD) beats its peers in recent days following the Federal Reserve's (Fed) monetary policy statement on Wednesday, the Swiss franc pair gains momentum.
The US Dollar Index (DXY), which measures the value of the US dollar relative to six other major currencies, is trading close to a new weekly high of 97.80 at the time of writing.
Last 7 Days' US Dollar Price
The Fed's monetary policy statement, which saw it cut interest rates by 25 basis points (bps) to 4.00%-4.25% in the face of a deteriorating US job market, caused the US dollar to spike higher. Additionally, the Fed hinted at many interest rate reductions for the rest of the year.
Mary Daly, president of the San Francisco Fed Bank, also admitted on Friday that policymakers initiated the monetary-easing program as a result of waning employment demand. In light of the US economy's noticeable softness over the previous year, Daly stated that the Fed's decision to lower interest rates was made in an effort to "attempt and bolster a weakening labor market."
Fed Chair Jerome Powell's remarks at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon on Tuesday will be the main focus of investors. More clues regarding the Fed's stance for monetary policy would be appreciated by investors.
The Swiss National Bank's (SNB) interest rate announcement on Thursday will be the main catalyst for the Swiss franc (CHF) this week. As the economy struggles to drive inflation upward, the SNB is anticipated to keep interest rates at zero. Cues regarding whether the SNB could drive interest rates into negative territory in the near future would be of great interest to investors.
