USD/CHF holds steady below 0.8000; eyes SNB Chairman Schlegel's speech, US inflation data

USD/CHF lacks any firm intraday direction as traders seem reluctant ahead of US inflation data.
Fed rate cut bets cap the overnight USD recovery and act as a headwind for the currency pair.
Reviving safe-haven demand benefits the CHF and also contributes to keeping a lid on spot prices.

Haresh Menghani FXStreet

The USD/CHF pair struggles to capitalize on the previous day's goodish recovery move from the 0.7915 area, or the lowest level since July 23, and seesaws between tepid gains/minor losses during the Asian session on Wednesday. Spot prices remain below the 0.8000 psychological mark as traders now look forward to the crucial US inflation figures for some meaningful impetus.

The US Producer Price Index (PPI) is scheduled for release later during the North American session this Wednesday and will be followed by the US Consumer Price Index (CPI) on Thursday. Given that a 25-basis-point (bps) rate cut by the Federal Reserve (Fed) at next week's policy meeting is already priced in, the data will influence market expectations about the possibility of a jumbo interest rate cut. This, in turn, will play a key role on influencing the near-term US Dollar (USD) price dynamics and determining the next leg of a directional move for the USD/CHF pair.

In the meantime, the upbeat market mood is offset by rising geopolitical tensions and trade uncertainties. In fact, Israel carried out an air strike targeting Hamas leadership in Qatar's capital, Doha. Moreover, Poland placed its air defenses on high alert in response to Russia's heaviest air assaults on Ukraine in recent weeks. Meanwhile, US President Donald Trump has urged the European Union (EU) to impose 100% tariffs on Chinese and Indian goods to pressure Russian President Vladimir Putin, offering support to the safe-haven Swiss Franc (CHF) and capping the USD/CHF pair.

Traders on Wednesday will further take cues from Swiss National Bank (SNB) Governing Board Chairman Martin Schlegel's speech to grab short-term opportunities. Nevertheless, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for any meaningful appreciating move.

Economic Indicator

SNB Chairman Schlegel speech

Martin Schlegel became the Swiss National Bank (SNB) Chairman in October 2024. Schlegel was previously the Vice Chairman of the Governing Board of the SNB and he worked at various positions in the Swiss central bank. As head of the SNB. Schlegel remarks can significantly alter the value of the nation's currency, the Swiss Franc (CHF)

EUR/USD faces some resistance near 100-SMA on H4, around 1.1830 zone

The EUR/USD pair gains some follow-through positive traction for the second consecutive day and climbs to the 1.1830 region during the Asian session on Thursday. The US Dollar remains on the back foot amid concerns about the economic fallout from US President Donald Trump's erratic trade policies and acts as a tailwind for spot prices.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.