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USD/CHF edges lower ahead of Swiss ZEW survey, US GDP release

  • USD/CHF edges lower as investors position ahead of key data releases in Switzerland and the United States.
  • The US Dollar remains under pressure as markets assess the impact of rate cuts already delivered by the Fed.
  • Focus turns to the Swiss ZEW survey and the US third-quarter GDP report, both due on Tuesday.

USD/CHF trades lower and hovers around 0.7930 on Monday at the time of writing, down 0.40% on the day. The pair gives back part of the gains posted in the previous session, amid a cautious market mood ahead of the release of the US Gross Domestic Product (GDP) for the third quarter, scheduled for Tuesday.

Pressure on the US Dollar (USD) largely reflects ongoing uncertainty surrounding the outlook for monetary policy at the Federal Reserve (Fed). Cleveland Federal Reserve Bank President Beth Hammack says monetary policy is at an appropriate level to pause and assess the cumulative effects of the 75 basis points of rate cuts already implemented. These remarks reinforce the view that the central bank can afford to wait for more data before making further adjustments.

According to the CME FedWatch tool, the chance of rates being held steady at the Federal Reserve’s January meeting has risen to nearly 79%, while expectations for a near-term rate cut have eased. Still, the debate within the institution remains active. US President Donald Trump recently said that the next Chair of the Fed will be someone who supports significantly lower interest rates. Meanwhile, Fed Governor Christopher Waller notes that with inflation still above target, the central bank can lower rates gradually, without urgency.

In Switzerland, investors are turning their attention to the December ZEW Economic Expectations survey, due on Tuesday. The release is closely watched for signals on business confidence and labor market prospects, as well as for greater clarity on the path of the Swiss National Bank (SNB).

The Swiss central bank is maintaining a stable stance for now. In its fourth-quarter Quarterly Bulletin, the SNB reiterates that it left its policy rate unchanged at 0%, judging that medium-term inflation pressures remain broadly contained and that the current stance is appropriate to support the economy while ensuring price stability.

Swiss Franc Price Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.39%-0.68%-0.50%-0.45%-0.69%-0.68%-0.42%
EUR0.39%-0.28%-0.11%-0.05%-0.29%-0.29%-0.03%
GBP0.68%0.28%0.19%0.23%-0.01%-0.00%0.26%
JPY0.50%0.11%-0.19%0.08%-0.17%-0.12%0.10%
CAD0.45%0.05%-0.23%-0.08%-0.24%-0.24%0.03%
AUD0.69%0.29%0.01%0.17%0.24%0.00%0.27%
NZD0.68%0.29%0.00%0.12%0.24%-0.00%0.26%
CHF0.42%0.03%-0.26%-0.10%-0.03%-0.27%-0.26%

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 Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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