Swiss Franc declines against US Dollar amid hawkish Fed bets
The Swiss Franc (CHF) trades lower against its major currency peers at the start of the week. The USD/CHF pair rises 0.15% to near 0.8082 as a market-sentiment revival following the announcement of a ceasefire in the Middle East has diminished the appeal of safe-haven assets.
The Swiss Franc (CHF) experienced a decline against the US Dollar (USD) as market sentiment favored the US following the announcement of a ceasefire in the Middle East. The USD/CHF pair rose by 0.15% to approximately 0.8082. This change was due to expectations of a potential interest rate hike from the Federal Reserve (Fed), making the USD more attractive to international investors.
The strength of US economic activity also raised questions about the tightness of current Fed policy, with TD Securities noting that "robust activity is also another sign that policy may not be that restrictive." However, the Federal Reserve's inflation concerns remained a critical factor, as persistent price pressures in the services sector could prompt additional rate hikes.
The CME FedWatch tool indicated a 64.6% probability of a rate increase in the September meeting. Investors would focus on US economic data, particularly the Nonfarm Payrolls (NFP) data for July, which would be released the following Friday.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Canadian Dollar drifts lower as falling oil prices counter weak USD amid Iran hopes fxstreet.com
- Bitcoin slips under $63,000 despite Iran deal hopes as Coldcard losses rattle market coindesk.com
- Gold firms as oil prices slump after Trump holds off on Iran attack thehindubusinessline.com
- U.S. Treasury yields fall as oil prices plunge on Iran de-escalation hopes cnbc.com
