USD/CHF gains traction above 0.8250 as traders await FOMC Minutes
The USD/CHF pair gains ground to near 0.8285 during the early European session on Wednesday. Better-than-expected US Consumer Confidence data and improved risk sentiment provide some support to the US Dollar (USD). Traders brace for the Swiss ZEW Survey and the Minutes of the Federal Open Market Committee (FOMC), which will be released later on Wednesday.
The Greenback remains strong after US President Donald Trump backed away from imposing steep tariffs on EU goods. Additionally, encouraging economic signs in the United States (US) contribute to the USD’s upside. The Conference Board's Consumer Confidence Index improved to 98.0 in May versus 86.0 prior (revised from 85.7). This reading suggested a growing optimism among US consumers.
Nonetheless, investor appetite for safe-haven assets remains supported by persistent fiscal challenges in the US, economic uncertainties, and geopolitical tensions. Russian officials said early on Wednesday that Russian air defences destroyed or intercepted well over 100 Ukrainian drones far into the night over widely separated areas of Russia, per Reuters. Russia in the past week also sent waves of drones to attack Ukrainian cities
Following five consecutive rate cuts, the Swiss National Bank (SNB) is expected to cut its benchmark rate to 0% at the SNB’s upcoming policy meeting on June 19. That would end a period of positive monetary policy, the lowest in almost three years. SNB President Martin Schlegel suggested that the central bank would go sub-zero if needed. That doesn’t appear imminent for now, with only a handful of SNB policymakers expecting such a move this year.
Source: Fxstreet
