Swiss Franc Gains as US Dollar Weakens Amid Fed Uncertainty
The US Dollar has weakened against the Swiss Franc in the wake of a Reuters poll indicating that the Federal Reserve may hold interest rates steady at its upcoming meeting. This shift in expectations has led to a depreciation of the USD/CHF pair, which is trading around 0.8090 during Asian hours on Thursday.
Economic data released recently suggests strong growth and inflation, but traders are closely watching this week's US Producer Price Index data and Consumer Price Index data to gauge the Fed's monetary policy outlook. The CME FedWatch Tool currently prices in over 60% odds for a rate increase at the central bank's next meeting.
The Swiss Franc has received strong support from rising prospects of tighter monetary policy and higher inflation, as well as continued safe-haven demand. Strategists at UOB Group maintain a neutral medium-term stance on USD/CHF, expecting the pair to trade in a range between 0.8055 and 0.8155.