USD/CHF Trades Flat as Oil Prices Ease
The US Dollar (USD) is trading relatively flat against the Swiss Franc (CHF), as easing oil prices weigh modestly on the Greenback. The USD/CHF pair trades around 0.8166, down from its highest level since June 2025 at 0.8185.
Despite the slight dip in oil prices, which have risen by 25% this month due to Middle East tensions threatening shipping through key waterways, the US Dollar remains supported by strong business activity and rising Federal Reserve (Fed) rate-hike bets.
The CME FedWatch Tool indicates an 80% chance of a rate hike in September, although the Fed is widely expected to keep borrowing costs unchanged at its July 28-29 meeting. This hawkish momentum is building, but TD Securities warns that more evidence is needed to secure majority support for a rate hike.