USD/CHF Steady as Traders Await US Inflation Data and Fed Hike Expectations

The USD/CHF pair remains steady near 0.8090 as traders await crucial US inflation data, including the Producer Price Index (PPI) and Consumer Price Index (CPI), which could impact expectations for another Federal Reserve rate hike.

According to the CME FedWatch tool, there is a 60.6% probability of another quarter-point rate hike from the Fed, while the Swiss National Bank is expected to keep its policy rate at 0% well into next year.

Rising tensions in the Middle East could boost safe-haven currencies like the CHF, but analysts note that despite recent upside surprises in Swiss inflation, the policy outlook remains remarkably benign, with market confidence that the SNB can stay on hold for an extended period.