The USD/CHF retreated from its five-month high after the Federal Reserve's (Fed) 'dot-plot' suggested only two rate cuts in 2025 and Switzerland's trade surplus narrowed. The pair traded around 0.8970 during European hours.
USD/CHF retreated after hitting its five-month high at 0.9021 on Thursday. The Fed’s ‘dot-plot’ suggested only two rate cuts in 2025. The Swiss trade surplus narrowed to 5,424 million in November, down from the previous surplus of 8,025 million. USD/CHF edges lower following Switzerland’s trade balance data released on Thursday. The pair trades around 0.8970 during the European hours after pulling back from five-month high at 0.9021.
Additionally, the USD/CHF appreciated as the US Dollar (USD) strengthened following the Federal Reserve’s (Fed) hawkish 25 basis point (bps) rate cut at its December meeting, bringing the benchmark lending rate to a range of 4.25%-4.50%, marking a two-year low. The US Dollar Index (DXY) reached 108.28, the highest level not seen since November 2022, on Thursday as the Fed’s Summary of Economic Projections, or ‘dot-plot’, suggested only two rate cuts in 2025, down from four cuts projected in September. Additionally, Fed Chair Jerome Powell stated that the Fed will be cautious about further cuts as inflation remains stubbornly above the central bank’s 2% target. Traders are highly expected to focus on upcoming US economic data, including weekly Initial Jobless Claims, Existing Home Sales, and the final Q3 Gross Domestic Product (GDP) Annualized reading, scheduled for release on Thursday. Switzerland's Trade Balance, released by the Federal Customs Administration, showed a narrowing surplus of 5,424 million in November, down from 8,025 million in October. On a month-on-month basis, exports declined to 23,682 million, while imports fell to 18,257 million. The Swiss Franc (CHF) remains under pressure as the Swiss National Bank (SNB) reaffirmed its commitment to maintaining price stability over the medium term, signaling readiness to adjust monetary policy if needed. Switzerland's State Secretariat for Economic Affairs (SECO) has downwardly revised growth targets for the current year and 2025 to 0.9% and 1.5%, respectively
USD/CHF Federal Reserve Swiss Franc Trade Balance Interest Rates
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CHF trades around 0.8900 after pulling back from four-month highsUSD/CHF corrects downwards after hitting its four-month high of 0.8957 in the previous session, currently trading around 0.8910 during the Asian session on Monday.
Read more »
USD/CHF bounces back to near 0.8850, traces US Dollar’s recovery in light trading dayThe USD/CHF pair rebounds to near 0.8850 in the European trading session on Thursday after a sharp sell-off on Wednesday.
Read more »
USD/CHF bounces back from 0.8900 as USD rebounds, Fed policy in focusThe USD/CHF pair rebounds from the round-level support of 0.8900 in the European session on Monday.
Read more »
USD/CHF Reaches Five-Month High on Strong US Dollar and SNB Rate Cut ExpectationsThe USD/CHF pair surged to a five-month high, driven by the US Dollar's strength and anticipation that the Swiss National Bank (SNB) will further lower interest rates to combat inflation risks.
Read more »
USD/CHF Soars to Five-Month High on US Dollar Strength and SNB Rate Cut ExpectationsThe USD/CHF currency pair reached a five-month peak around 0.8970 fueled by a robust US Dollar and anticipation of further interest rate cuts by the Swiss National Bank (SNB). The SNB's surprise 50-basis-point rate reduction last week signaled a potential continuation of its easing monetary policy to counter deflationary pressures. Investors are also eyeing the upcoming Q4 SNB Bulletin report for further insights into the central bank's outlook. Meanwhile, the US Dollar strengthened ahead of the Federal Reserve's interest rate decision, which is expected to result in a 25-basis-point cut.
Read more »
Kansas Basketball Dominates NC State: Mayo and Dickinson Lead the WayAfter back-to-back losses, the Jayhawks bounced back with a strong home victory.
Read more »