Swiss Franc Recovers, USD Trims Gains on Weaker Yields and Dovish Fedspeak

The Swiss Franc (CHF) showed moderate recovery on Wednesday, rising from yearly lows despite tepid economic expectations data. The US Dollar (USD) trimmed its gains as US Treasury yields retreated amid dovish comments by Fed's Williams.

The USD/CHF pair pulled back to the 0.8330 area during the European session but remains close to the 16-month highs above 0.8350 hit on Tuesday following a lukewarm ZEW Economic Sentiment Report.

According to data released by the ZEW institute, economic expectations deteriorated in Switzerland in September, with its monthly sentiment index falling to 2.6 from 12.1 in August.