Dollar Stays Bid Ahead of Fed Meeting, Swiss Franc Gains Popularity

Markets are taking the possibility of a Fed hike tomorrow more seriously, with chances now priced at nearly 40%. This has put pressure on the US dollar to stay bid into the Federal Open Market Committee meeting.

The ADP job numbers, advanced trade balance for June, and consumer confidence for July will be closely watched today. A strong showing in these data could further boost the dollar.

Meanwhile, the Swiss franc has become a popular funding currency, with investors turning to it as interest rate differentials widen against the franc. This trend is expected to continue if the Fed hikes rates tomorrow.