fxs_header_sponsor_anchor

News

USD/CHF consolidates around 0.8950 as investors shift focus to Fed-SNB monetary policy

USD/CHF consolidates around 0.8950 as investors shift focus to Fed-SNB monetary policy

  • USD/CHF trades sideways around 0.8950 as the US Dollar turns subdued after refreshing a six-month high.
  • The US Dollar failed to capitalize on strong Retail Sales data for August as it was majorly driven by higher gasoline prices.
  • The SNB is expected to maintain a hawkish tone as inflation in the Swiss economy has not come confidently below 2%.

The USD/CHF pair trades directionless around 0.8950 in the European session. The Swiss Franc asset struggles to find a decisive move as investors shift focus to the interest rate decision by the Federal Reserve (Fed) and the Swiss National Bank (SNB), which will be announced next week.

S&P500 futures added some gains in the London session, portraying ease in the risk-off profile after upbeat Chinese economic data receded worries about a global economic slowdown. China’s annual Industrial Production rose by 4.5% and Retail Sales expanded by 4.6%, outperformed expectations.

The US Dollar Index (DXY) corrected gradually to near 105.20 from its six-month high of 105.43 amid some improvement in the risk appetite of the market participants. The US Dollar failed to capitalize on strong Retail Sales data for August as it was majorly driven by higher gasoline prices. Meanwhile, US President Joe Biden vowed to bring down gasoline prices, which rose 106% in August.

After stickier headline consumer inflation and Producer Price Index (PPI), investors see the impact of rising gasoline prices limited on inflation, which would discourage Fed policymakers from discussing more interest rate hikes for the remainder of 2023.

On the Swiss Franc front, investors keenly focus on the SNB monetary policy, which will be announced on Thursday. The SNB is expected to maintain a hawkish tone as inflation in the Swiss economy has not come confidently below 2%. SNB Chairman Thomas J. Jordan already conveyed that the consequences of higher inflation are worse than the repercussions of a lower price index.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2025 FOREXSTREET S.L., All rights reserved.