Dollar Holds, Franc Awaits Trigger
Today's USD/CHF movement is likely influenced by the tug-of-war between the strength of the US dollar and the safe-haven appeal of the Swiss franc. From the dollar perspective, the market is still closely monitoring the direction of the Fed's policy after inflation showed signs of slowing. Expectations of interest rate cuts are starting to form, but they are not yet strong enough to weaken the dollar aggressively, so the USD is still trying to hold its ground.
On the other hand, the Swiss franc remains sensitive to global risk sentiment. Geopolitical uncertainty and issues with the stability of US monetary policy keep the CHF in demand as a safe haven. However, franc gains are likely to be limited because the Swiss National Bank is known to be uncomfortable with an overly strong CHF, which could potentially harm exports.
Given these conditions, the USD/CHF is moving cautiously and relatively balanced. The market is awaiting new catalysts, both from US economic data and changes in global risk sentiment. As long as there are no major surprises, this pair has the potential to move in a consolidative manner, with volatility that could increase at any time if the interest rate or global risk narrative changes rapidly. (az)
Source: Newsmaker.id
