USD/CHF gains as Fed signals slower easing, US-China trade relations improve
|- The US Dollar consolidates its gains after the Federal Reserve’s hawkish rate cut.
- The Federal Reserve signals a slower pace of easing, trimming odds of a December cut.
- Improved US-China relations offer moderate support to risk sentiment.
USD/CHF trades higher around 0.8000 on Thursday, up 0.20% for the day. The US Dollar (USD) finds support after the Federal Reserve (Fed) delivered a widely expected 25 basis-point rate cut to a range of 3.75%–4.00%, while signaling a slower pace of future easing.
Fed Chair Jerome Powell emphasized that a further rate reduction in December is “far from a foregone conclusion”, prompting markets to scale back expectations for a near-term cut. According to data from the CME FedWatch tool, the chances of a December rate cut fell to 70% after the policy meeting. Analysts from Brown Brothers Harriman noted that the combination of a hawkish tone and a divided Federal Open Market Committee (FOMC) vote supports the case for a firmer US Dollar.
At the same time, the announcement of a one-year trade truce between the United States (US) and China has improved investor sentiment. The two countries agreed to roll back some tariffs and ease export controls, with China pledging to resume key agricultural imports and allow the free export of rare earths to the US. This breakthrough reduces global trade tensions, which had weighed on growth prospects throughout the year.
Meanwhile, the Swiss economy has shown tentative signs of improvement. The October ZEW Expectations Index rebounded sharply to -7.7 from -46.4 in September, while the KOF Leading Indicator rose to 101.3 from 98.0, exceeding consensus forecasts.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.14% | 0.89% | 0.25% | 0.27% | 0.18% | 0.09% | |
| EUR | -0.01% | 0.13% | 0.89% | 0.24% | 0.26% | 0.17% | 0.08% | |
| GBP | -0.14% | -0.13% | 0.75% | 0.11% | 0.12% | 0.03% | -0.06% | |
| JPY | -0.89% | -0.89% | -0.75% | -0.67% | -0.63% | -0.75% | -0.84% | |
| CAD | -0.25% | -0.24% | -0.11% | 0.67% | 0.03% | -0.08% | -0.17% | |
| AUD | -0.27% | -0.26% | -0.12% | 0.63% | -0.03% | -0.09% | -0.18% | |
| NZD | -0.18% | -0.17% | -0.03% | 0.75% | 0.08% | 0.09% | -0.07% | |
| CHF | -0.09% | -0.08% | 0.06% | 0.84% | 0.17% | 0.18% | 0.07% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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.