Swiss Franc Holds Steady as Traders Await Federal Reserve Decision
The Swiss Franc (CHF) steadied against the US Dollar (USD) on Tuesday as the Greenback gave up its early gains. Traders are cautious ahead of the Federal Reserve's monetary policy announcement on Wednesday.
The Fed is widely expected to keep interest rates unchanged, but policymakers may retain a hawkish stance that keeps the US Dollar supported. The Swiss National Bank's (SNB) zero-interest-rate policy makes the Franc attractive for carry trades, limiting the scope for a sustained recovery in USD/CHF.
The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, traded around 101.35, easing from 101.64, its highest level in a month. Lower energy prices and a pause in attacks between the United States and Iran also contributed to the dollar's weakness.
US economic data offered little support, with the Conference Board's Consumer Confidence Index falling to 90.8 in July from an upwardly revised 92.2 in June.