USD/CHF Remains Steady Near 0.9050 Ahead of Swiss Trade Balance Data
USD/CHF steadies after two consecutive days of gains, trading around 0.9070 during the Asian session on Thursday. This decline is mainly attributed to a weaker US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback against six major currencies, hovers slightly below the 108.00 mark at the time of writing.
Traders are awaiting the release of the US fourth-quarter Gross Domestic Product (GDP) growth data, scheduled for Thursday. The market consensus expects a slowdown in annualized GDP growth, with a forecast of 2.6%, down from the previous 3.1%. Inflationary concerns persist, with the Q4 GDP Price Index expected to rise to 2.5%, up from 1.9%.
The downside for USD/CHF may be limited, as the USD could strengthen following the Federal Reserve's (Fed) cautious approach to monetary policy. The Fed maintained its overnight borrowing rate at 4.25%-4.50% during its January meeting on Wednesday, as widely anticipated. This decision follows three consecutive rate cuts since September 2024, totaling a one-percentage-point reduction.
The Fed's hawkish stance was further reinforced by its decision to remove language suggesting confidence in inflation reaching its 2% target. Fed Chair Jerome Powell also emphasized in the press conference that the central bank would require "real progress on inflation or some weakness in the labor market" before considering any policy changes.
In Switzerland, the ZEW Survey Expectations for January increased to 17.7, reversing the previous month's decline to -20, according to data released on Wednesday. Traders are also awaiting the Swiss Trade Balance for December and the KOF Leading Indicator for January, both scheduled for release on Thursday.
Source: Fxstreet
