On Monday, USD/CHF rose almost half a percent to trade in the 0.8690s as the US Dollar continued its recovery from recent lows. This rally comes after a period of panic selling triggered by US recession fears, which caused the pair to drop to 0.8433 on August 5. However, with reassuring US economic data, the markets have stabilized and the USD has rebounded, particularly against the Swiss Franc.
Swiss manufacturers have been feeling the pressure of the Franc’s appreciation, which has affected their export competitiveness. They are calling on the Swiss National Bank to take action to address this issue and prevent further appreciation of the currency.
Despite Switzerland’s struggles with weak export demand, the SNB is expected to cut interest rates at its upcoming meeting, which could further weaken the CHF. This, combined with potential rate cuts by the US Federal Reserve, may impact the USD/CHF pair in the near future.
Looking ahead, US inflation data releases in the coming days will provide more insight into the outlook for interest rates in the US, which could in turn affect the trajectory of the USD/CHF pair. It’s important to monitor these developments to make informed decisions in the financial markets.