The USD/CHF shows slight increases to approximately 0.9100 in the early European session on Friday.
In Q4, the US economy grew more slowly than anticipated.
The Swiss franc may be supported by the safe-haven flows.
On Friday, the USD/CHF pair trades with slight gains, approaching 0.9100 in the early European session. The US Dollar (USD) is somewhat supported by the hawkish stance taken by the US Federal Reserve (Fed). Later on Friday, the US will release its December Personal Consumption Expenditures (PCE) inflation data, which will provide additional guidance to investors. Fed Governor Michelle Bowman will also be speaking.
On Wednesday, the US central bank did not alter interest rates. In a press conference, Fed Chair Jerome Powell stated that although inflation is still relatively high, the US economy is still doing well. As a result, the central bank does not have to change its policy position quickly. According to the CME FedWatch Tool, markets have less than a 50% chance that the Fed will lower rates prior to its June meeting after its January meeting. As a result, the greenback appreciates in value relative to the Swiss franc (CHF).
In spite of this, the USD is weakened by the negative US GDP data. The US economy grew at an annualized rate of 2.3% in Q4, which was less than the 2.6% growth predicted, according to the Bureau of Economic Analysis's advance estimate of fourth quarter US GDP. The reading was lower than the Q3 growth of 3.1%.
A week ago, Israel and Hamas agreed to a ceasefire in Gaza. Meanwhile, despite continuous Israeli airstrikes against Hezbollah targets, the November ceasefire in Lebanon is still in effect. Investors will keep a careful eye on developments pertaining to Middle Eastern geopolitical risks. The Swiss franc could gain from any indications of rising geopolitical tensions in the area, which would increase safe-haven flows.
In Q4, the US economy grew more slowly than anticipated.
The Swiss franc may be supported by the safe-haven flows.
On Friday, the USD/CHF pair trades with slight gains, approaching 0.9100 in the early European session. The US Dollar (USD) is somewhat supported by the hawkish stance taken by the US Federal Reserve (Fed). Later on Friday, the US will release its December Personal Consumption Expenditures (PCE) inflation data, which will provide additional guidance to investors. Fed Governor Michelle Bowman will also be speaking.
On Wednesday, the US central bank did not alter interest rates. In a press conference, Fed Chair Jerome Powell stated that although inflation is still relatively high, the US economy is still doing well. As a result, the central bank does not have to change its policy position quickly. According to the CME FedWatch Tool, markets have less than a 50% chance that the Fed will lower rates prior to its June meeting after its January meeting. As a result, the greenback appreciates in value relative to the Swiss franc (CHF).
In spite of this, the USD is weakened by the negative US GDP data. The US economy grew at an annualized rate of 2.3% in Q4, which was less than the 2.6% growth predicted, according to the Bureau of Economic Analysis's advance estimate of fourth quarter US GDP. The reading was lower than the Q3 growth of 3.1%.
A week ago, Israel and Hamas agreed to a ceasefire in Gaza. Meanwhile, despite continuous Israeli airstrikes against Hezbollah targets, the November ceasefire in Lebanon is still in effect. Investors will keep a careful eye on developments pertaining to Middle Eastern geopolitical risks. The Swiss franc could gain from any indications of rising geopolitical tensions in the area, which would increase safe-haven flows.
