The USD/CHF pair continues to trade in negative territory for the third consecutive day near 0.8460 in Thursday’s early Asian session. Weaker US economic data and a dovish Fed are weighing on the US Dollar, while softer inflation in Switzerland supports the case for another rate cut by the SNB.
Investors are closely watching the release of key US economic data, including the ISM Services PMI, ADP report on private-sector employment, and weekly Initial Jobless Claims. The recent weaker US economic data and the dovish stance of the Fed are contributing to the broad weakness of the Greenback.
Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary Daly have both expressed readiness to cut interest rates, further fueling expectations of a larger rate cut in September. On the Swiss front, Swiss inflation slowed more than expected in August, leading to speculation of another rate cut by the SNB.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency and is considered a safe-haven asset. The Swiss National Bank (SNB) meets quarterly to decide on monetary policy, aiming for an annual inflation rate of less than 2%. Macroeconomic data releases in Switzerland can impact the CHF’s valuation, as the country’s economy is heavily dependent on the Eurozone.