USD/CHF remains coy around 0.8950 as investors await the Fed’s policy decision

Featured in:
abcd
USD/CHF remains coy around 0.8950 as investors await the Fed’s policy decision

  • USD/CHF remains composed in anticipation of the upcoming Fed policy decision.
  • The US dollar remains sturdy as the Fed can be expected to keep interest rates steady in the 5.25%-5.50% range on Wednesday.
  • The SNB is expected to leave interest rates unchanged in June.

The USD/CHF pair remains composed on tender trading as investors take a cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision scheduled for Wednesday. On Tuesday morning in Europe, the pair oscillates around the level of 0.8950.

The Fed is expected to keep interest rates steady at a range of 5.25% to 5.50% as it seeks to limit inflation to its 2% target. Additionally, U.S. headline and core CPI data for May are estimated to show year-over-year growth of 3.4% and 3.5%, respectively.

sadasda

Solid U.S. employment data for May reduced the likelihood of two Federal Reserve (Fed) rate cuts in 2024. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut of at least 25 basis points in September has fallen to almost 49.0%. , up from 59.5% the week before.

In Switzerland, the consumer confidence index remained relatively unchanged at -38 in May compared to -38.1 in April and was below forecasts of -37. Traders are currently awaiting the Financial Stability Report from the Swiss National Bank (SNB), which will present an assessment of the stability of the banking sector and financial market infrastructure.

The Swiss National Bank (SNB) is unlikely to cut interest rates in June, despite inflation remaining below the 2% threshold. Earlier, SNB President Thomas J. Jordan warned against a diminutive risk of rising inflation expectations.

abcd
sadasda

Find us on

Latest articles

Related articles

See more articles

Instant View: Japanese Yen Surges, Alarm Bells Are Ringing

(Reuters) - The Japanese yen rose almost 3% on Thursday, posting its biggest daily gain since...

Asian currency rises, dollar falls ahead of CPI report

Investing.com-- Most Asian currencies rose on Thursday as the dollar fell after comments from Federal Reserve Chairman...

BofA sees EUR/USD parity as a sporadic event that...

Bank of America analysts noted that while some market observers still speculate on the possibility of achieving...