USD/CHF extends recovery to near 0.7900 as US Dollar gains ground
The USD/CHF pair recovers further to near 0.7900 during the late Asian trading session on Thursday. The Swiss Franc pair bounces back as the US Dollar (USD) gains ground after the monetary policy announcement by the Federal Reserve (Fed) on Wednesday.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, extends Wednesday’s recovery move to near 97.15.
However, the outlook of the US Dollar remains uncertain as the Fed has signaled two more interest rates in the remainder of the year after cutting them by 25 basis points (bps) to 4.00%-4.25%. The Fed stated that monetary policy adjustments became appropriate due to weakening United States (US) labor market conditions.
Fed Chair Jerome Powell warned of slowing US labor demand in his press conference, following the monetary policy announcement and acknowledged that that job market has lost strength. “Can no longer say labor market is solid,” Powell said.
In Thursday’s session, investors will focus on Initial Jobless Claims data for the week ending September 12, which will be published at 12:30 GMT. Investors will closely monitor jobless claims data as Fed dovish speculation intensified last week after it showed the highest reading in four years.
In the Swiss economy, traders await a key trigger to know whether the Swiss National Bank (SNB) will push interest rates into the negative territory amid downside inflation risks. The consumer inflation in the Swiss economy is growing at a moderate pace of 0.2% on an annualized basis from past two months.
Source : Fxstreet.com
