Forex
USD Surges Against CHF Amid Fed Hike Expectations
The Swiss Franc (CHF) hit monthly lows against the US Dollar (USD) on Wednesday, extending its decline to nearly 0.9% in two days.
Risk aversion and expectations of a Federal Reserve rate hike are boosting the USD, which is expected to rise further with the September 16 monetary policy meeting looming.
The USD/CHF pair has reached one-month highs above 0.8150, with technical indicators showing strongly overbought levels on intraday charts.
Market analysts expect the Swiss National Bank (SNB) to keep its benchmark interest rate at 0% on September 24, further diverging from the Fed's expected tightening stance.