A Reuters poll suggests that the Fed will keep interest rates unchanged through the end of the year, which causes the USD/CHF to weaken.
A 60% possibility of a rate hike is priced in by traders due to strong US jobs data.
The Swiss Franc is strengthened by tighter monetary expectations and demand for safe havens.
After showing gains the day before, the USD/CHF pair declines, trading at about 0.8090 on Thursday during Asian hours. The pair weakens as the US dollar (USD) declines in response to a Reuters survey in which most economists predicted that the Federal Reserve (Fed) would probably keep interest rates unchanged at its September 15–16 meeting and for the remainder of this year, once again defying market expectations for a series of hikes.
The majority of economic data in recent weeks has been positive, and a number of analysts have stated that the August Consumer Price Index data will be essential to confirming their predictions for future interest rates.
The US Producer Price Index data, which is scheduled to be released on Thursday, and the Consumer Price Index data, which is scheduled to be released on Friday, are being closely watched by market participants because they may offer crucial clues about the Federal Reserve's (Fed) monetary policy outlook prior to its meeting next week.
With the CME FedWatch Tool pricing in over 60% odds for a rate increase at the central bank's forthcoming policy meeting, traders have raised their bets on an interest rate hike in response to recent improved US jobs statistics.
As the Swiss Franc (CHF) gains significant support from the growing likelihood of tighter monetary policy and greater inflation from major central banks, together with ongoing demand for safe havens, the USD/CHF pair declines.
The impact of rising energy costs is anticipated to be short-lived, with electricity rates predicted to drop by about 4% starting next year, despite the fact that Swiss inflation doubled in August to 0.8%. In the meantime, quarterly economic growth was verified at 1.5%, a five-year high. According to a survey conducted by the Swiss Bankers Association, all bankers anticipate that the Swiss National Bank will maintain its policy rate at zero percent by the end of the year.
USD/CHF is only in the recent range.
UOB Group strategists reiterate that they "continue to have the same perspective as yesterday (07 Sep, spot at 0.8100)," maintaining a neutral medium-term position on USD/CHF. They "anticipate USD to trade in a range between 0.8055 and 0.8155" for the time being, which is consistent with their more general view of mostly aimless price movement and a propensity for consolidation over the next one to three weeks.
A 60% possibility of a rate hike is priced in by traders due to strong US jobs data.
The Swiss Franc is strengthened by tighter monetary expectations and demand for safe havens.
After showing gains the day before, the USD/CHF pair declines, trading at about 0.8090 on Thursday during Asian hours. The pair weakens as the US dollar (USD) declines in response to a Reuters survey in which most economists predicted that the Federal Reserve (Fed) would probably keep interest rates unchanged at its September 15–16 meeting and for the remainder of this year, once again defying market expectations for a series of hikes.
The majority of economic data in recent weeks has been positive, and a number of analysts have stated that the August Consumer Price Index data will be essential to confirming their predictions for future interest rates.
The US Producer Price Index data, which is scheduled to be released on Thursday, and the Consumer Price Index data, which is scheduled to be released on Friday, are being closely watched by market participants because they may offer crucial clues about the Federal Reserve's (Fed) monetary policy outlook prior to its meeting next week.
With the CME FedWatch Tool pricing in over 60% odds for a rate increase at the central bank's forthcoming policy meeting, traders have raised their bets on an interest rate hike in response to recent improved US jobs statistics.
As the Swiss Franc (CHF) gains significant support from the growing likelihood of tighter monetary policy and greater inflation from major central banks, together with ongoing demand for safe havens, the USD/CHF pair declines.
The impact of rising energy costs is anticipated to be short-lived, with electricity rates predicted to drop by about 4% starting next year, despite the fact that Swiss inflation doubled in August to 0.8%. In the meantime, quarterly economic growth was verified at 1.5%, a five-year high. According to a survey conducted by the Swiss Bankers Association, all bankers anticipate that the Swiss National Bank will maintain its policy rate at zero percent by the end of the year.
USD/CHF is only in the recent range.
UOB Group strategists reiterate that they "continue to have the same perspective as yesterday (07 Sep, spot at 0.8100)," maintaining a neutral medium-term position on USD/CHF. They "anticipate USD to trade in a range between 0.8055 and 0.8155" for the time being, which is consistent with their more general view of mostly aimless price movement and a propensity for consolidation over the next one to three weeks.
