USD/CHF holds steady above 0.9100, US CPI data in focus
The USD/CHF pair traded flat around 0.9130 during the early European trading hours on Wednesday (2/12). Traders await further information from US President Donald Trump on potential trade tariffs. US Consumer Price Index (CPI) inflation data will be in focus later on Wednesday. Additionally, Federal Reserve (Fed) officials Raphael Bostic and Christopher Waller are scheduled to speak.
On Tuesday, Fed Chair Jerome Powell stressed in his testimony before the Senate Banking, Housing and Urban Affairs Committee that the US central bank is in no rush to adjust monetary policy. Powell added that the policy is well positioned to weather risks and uncertainties.
"The uncertainties are likely enough to keep Fed officials on the sidelines for months to come, and if higher tariffs are eventually imposed then the subsequent rise in inflation will prevent further easing for the rest of 2025," said Neil Shearing, group chief economist at Capital Economics.
US CPI is expected to show an increase of 2.9% YoY in January compared to 2.9% previously, while Core CPI inflation is expected to ease to 3.1% YoY in January from 3.2% in the previous reading. If the report shows a better-than-expected reading, it could lift the US Dollar (USD) in general.
On the Swiss side, rising geopolitical tensions in the Middle East could boost the Swiss Franc (CHF), a safe-haven currency. Late Tuesday, Israeli Prime Minister Benjamin Netanyahu said that the ceasefire will end and Israel will resume “fierce fighting” in Gaza if Hamas does not release “our hostages” by Saturday afternoon.
Source: FXStreet
