- USD/CHF faces challenges as the US Dollar corrects downwards amid bond market optimism.
- The robust preliminary S&P Global US PMI data have weakened the likelihood of the Fed’s aggressive rate cuts.
- Traders await the Swiss Employment Level QoQ for the third quarter due on Monday.
USD/CHF corrects downwards after hitting its four-month high of 0.8957 in the previous session, currently trading around 0.8910 during the Asian session on Monday. The US Dollar (USD) receives downward pressure due to bond market optimism following President-elect Donald Trump's selection of fund manager Scott Bessent as the US Treasury secretary, a seasoned Wall Street figure and fiscal conservative.
Meanwhile, the US Dollar Index (DXY), which tracks the US Dollar's performance against six major currencies, has eased to around 107.00 after hitting a two-year high of 108.07 on Friday. However, downside risks for the USD remain limited, as the robust preliminary S&P Global US Purchasing Managers’ Index (PMI) data have strengthened expectations that the Federal Reserve (Fed) may slow the pace of rate cuts.
Futures traders are now assigning a 50.9% probability to the Federal Reserve cutting rates by a quarter point, down from approximately 61.9% a week earlier, according to the CME FedWatch Tool. Meanwhile, Treasury yields remain buoyed by expectations that President-elect Donald Trump’s proposed policies on tariffs, immigration, and taxes could spur inflation and constrain the Fed’s capacity to reduce borrowing costs further.
The Swiss Franc (CHF) has encountered difficulties as the recent decline in inflation has led to market expectations of further interest rate cuts by the Swiss National Bank (SNB) later this year and into 2025 to counter deflationary pressures. Switzerland's annual inflation rate dropped for the third consecutive month to 0.6% in October, marking the lowest level since June 2021.
SNB Chairman Martin Schlegel reaffirmed that the central bank will continue to focus on keeping inflation low as a key pillar of its monetary policy. Schlegel stressed that maintaining inflation within the 0-2% range has been vital for the Swiss economy's strong performance in recent years.
Economic Indicator
Employment Level (QoQ)
The Employment Level released by the Swiss Statistics shows the total number of employed workers. If the level goes up, it indicates economic expansion within the Swiss labor market, while a declining level suggests a lack of economic expansion. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.
Read more.Next release: Mon Nov 25, 2024 07:30
Frequency: Quarterly
Consensus: -
Previous: 5.499M
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.