USD/CHF Weakens, Global Turmoil and Fed Signals in Focus
The USD/CHF pair fell to around 0.7880 in Asian trading on Tuesday (December 30), reversing the previous two days' gains. This movement came as investors awaited the Swiss Federal Open Market Committee (KOF) key indicator, which could provide insight into future economic activity trends.
The Swiss franc is likely to be supported by demand for safe-haven assets amid global uncertainty. Tensions have escalated due to the Ukraine-Russia conflict, Saudi airstrikes in Yemen, and Iran's warning of a "full-scale war" with the US, Europe, and Israel. Trump's statement about the possibility of additional attacks also added pressure on the market.
USD/CHF faces additional challenges due to expectations of a Fed rate cut in 2026. The probability of a rate cut at the January Fed meeting is 83.9%, while the probability of a 25 basis point cut has decreased to 16.1%. This has slightly restrained the US dollar.
Traders remain cautious ahead of the release of the December FOMC Minutes, which could provide direction for the Fed's policy. The focus next shifts to the US Initial Jobless Claims data scheduled for release on Wednesday, which has the potential to trigger further market movements. (az)
Source: Newsmaker.id
