USD/CHF Strengthens, Investors Monitor US and Swiss Interest Rate Signals
The USD/CHF currency pair recovered from the previous session's losses and traded around 0.7950 during Asian trading hours on Friday. This strengthening occurred as the US dollar rebounded ahead of the release of the University of Michigan's Consumer Sentiment Index for December. However, the dollar's gains are expected to be limited as market expectations for a US Federal Reserve (Fed) interest rate cut increase following weaker-than-expected November inflation data.
The latest US CPI data showed headline inflation fell to 2.7%, lower than the 3.1% expected, while core CPI rose 2.6%, the slowest pace since 2021. Market sentiment was also affected by President Donald Trump's statement that the next Fed chair would support significant interest rate cuts, with the official announcement of Jerome Powell's successor expected soon.
In Switzerland, the November trade surplus widened to CHF 3,841 million, the largest since August, driven by rising exports and falling imports. Investors are also awaiting guidance from the Swiss National Bank (SNB) regarding interest rates, as the central bank is considered unlikely to return to negative rates given the potential impact on savers and pension funds. (az)
Source: Newsmaker.id
