USD Surges Against CHF on Rate Hike Expectations and Strong Swiss Economy
The US Dollar (USD) continued its winning streak against the Swiss Franc (CHF), reaching near its 16-month high of 0.8358 during Asian hours on Wednesday.
This comes as market expectations for additional Federal Reserve interest rate hikes increase, with the CME FedWatch Tool data indicating a nearly 68% probability of a rate hike in October and a 95% likelihood of a 25-basis-point increase in December.
The Swiss KOF Leading Indicator improved to 109.1 in September, its highest level in six years, showing notable strength in Switzerland's economic outlook.