Dollar Weakness Tests Key Support as Fed Bets Shift Interest Rate Outlook

The US Dollar has been under pressure in recent sessions due to softer economic data and growing market bets that the Federal Reserve may cut interest rates sooner than expected.

This has weighed on the greenback against major currencies, including the Swiss Franc, which is seen as a safe-haven asset. Investors are reacting to comments from Fed officials who have signaled a more cautious approach to further rate hikes.

The USD/CHF pair is testing its 100-day simple moving average (SMA), which has emerged as a critical support zone for the currency pair. If this level holds, the pair may see a rebound towards the 0.8800 resistance area.