Swiss Franc weakens ahead of SNB rate decision
USD/CHF edges higher on Wednesday, snapping a four-day losing streak as the US Dollar (USD) continues to attract buying following the Federal Reserve’s (Fed) hawkish rate hike at its September 15-16 policy meeting.
The Swiss Franc (CHF) experienced a weakening trend ahead of the Swiss National Bank (SNB) rate decision, as the US Dollar continued to attract buying following the Federal Reserve's hawkish rate hike at its September 15-16 policy meeting. The USD/CHF pair traded around 0.8234, nearing the one-year high of 0.8263. The Fed raised rates by 25 basis points, its first hike in three years, to bring inflation back to its 2% target in a more timely manner.
The SNB, with its policy rate of 0%, faces a yield disadvantage against the US Dollar, with economists expecting the central bank to keep rates unchanged at its upcoming decision. The hawkish stance of the Fed and ECB hikes may provide a counterweight to haven demand for the CHF, potentially easing pressure on the Franc.
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