- USD/CHF holds positive ground near 0.9115 in Monday’s early Asian session.
- Many Fed officials prefer to wait longer than previously anticipated to cut rates amid the elevated inflation, lifting the Greenback.
- SNB Chairman Thomas Jordan said monetary policy should remain focused on price stability.
The USD/CHF pair trades on a positive note on Monday during the early European session. The uptick of the pair is supported by the lower bets on rate cut expectations from the Federal Reserve (Fed), with traders seeing just one or two rate cuts happening this year. The preliminary US Gross Domestic Product Annualized for the first quarter (Q1) and the Personal Consumption Expenditures (PCE) Price Index will be the highlights for this week.
With a robust US economy and stickier-than-expected inflation, investors dial back interest rate cut expectations. Several Fed officials prefer to wait longer than previously expected to cut rates following a series of surprisingly high inflation readings. The high-for-longer US rate narrative lifts the Greenback and acts as a tailwind for the USD/CHF pair.
On Friday, Chicago Federal Reserve (Fed) President Austan Goolsbee hinted at a longer timeline for interest rate cuts as progress on inflation had “stalled”, adding inflation has significantly dropped from its pandemic-era peak of 9.1%, but remains stubbornly above the Fed’s target. Meanwhile, Atlanta Fed President Raphael Bostic noted that the US central bank wouldn’t cut rates until the end of the year.
On the Swiss front, Swiss National Bank (SNB) Chairman Thomas Jordan said on Saturday that monetary policy should remain focused on price stability. He said that economic growth and productivity are too low and many countries are running too much debt and excessive deficits. Apart from this, the escalating geopolitical tensions in the Middle East, particularly Israel and Iran, might boost safe-haven assets like Swiss France and cap the pair’s upside.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.