USD/CHF finds some support above the 0.8800 mark, Swiss Unemployment Rate eyed
|- USD/CHF loses momentum above 0.8800 in Thursday’s early European session.
- Fed Chair Powell thought the US rate had reached its peak and it would be cut later this year.
- The fall in Swiss inflation data prompted speculation that the SNB could cut interest rates later this month.
- Investors await the Swiss Unemployment Rate, US weekly initial Jobless Claims ahead of Fed Chair Powell's testimony on Thursday.
The USD/CHF pair finds some support above the 0.8800 mark during the early European session on Thursday. The pair trades in negative territory for the third consecutive day as the rising prospects of a rate cut by the Fed in June drag the US dollar (USD) lower. USD/CHF currently trades near 0.8810, down 0.12% on the day.
The Federal Reserve (Fed) Jerome Powell told the House Financial Services Committee on Wednesday that he thought the interest rate in the US had reached its peak and it would be cut later this year. However, Powell highlighted that the economic outlook is still uncertain. San Francisco Fed President Mary Daly stated that Fed policy is in a good position, but holding rates high for too long could hurt the economy.
On the Swiss front, the Swiss CPI inflation data fell in February to its lowest level since October 2021, raising speculation that the Swiss National Bank (SNB) could lower the interest rates later this month.
However, the downside of Swiss Franc (CHF) might be limited due to the escalating geopolitical tensions in the Middle East. Early Wednesday, US officials reported that three seafarers had been killed and at least four others were in critical condition in a Houthi missile attack on a merchant ship in the Gulf of Aden. This, in turn, might boost traditional safe-haven assets like CHF and weigh on the USD/CHF pair.
Market players will monitor Switzerland’s February Unemployment Rate and the US weekly Initial Jobless Claims, due on Thursday. Additionally, the second testimony by Fed Chair Powell and the Fed’s Mester speech will be closely watched. Traders will find trading opportunities around the USD/CHF pair.
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