US Dollar Weakens After Goldman Sachs Comments Send USD/CHF Lower

The US Dollar (USD) weakened after comments from Goldman Sachs chief economist Jan Hatzius, causing the USD/CHF currency pair to edge lower. The pair traded around 0.8090 during the Asian hours on Monday.

Hatzius reiterated his expectation that the Federal Reserve will hold interest rates steady in September, citing a lack of evidence for a rate hike. He also stated that recent better-than-expected summer inflation data do not yet signal a meaningful change in underlying trends.

Fed Chair Kevin Warsh delivered a hawkish tone at Jackson Hole, with the FXS Speechtracker score reaching 7.4/10, above the historical average of 6.5/10. This suggests that the Fed is concerned about price stability and may be more likely to raise interest rates in the future.

The Swiss National Bank (SNB) has maintained its key policy rate at 0% through 2027, but market pricing reflects odds of a hike as early as March 2027. This could potentially reinforce the Swiss Franc's appeal as a funding currency for carry trades.