Markets Hesitate, USD/CHF Awaits Powell's Surprise
The USD/CHF pair moved sluggishly around 0.7920 during the Asian session on Tuesday afternoon. Market participants were cautious ahead of Federal Reserve Chairman Jerome Powell's speech scheduled for tonight, as it could provide clues as to the direction of US interest rates for the remainder of the year.
Powell's speech was considered crucial after several Fed officials on Monday warned of the need to remain cautious in cutting interest rates. Louis Fed President Alberto Musalem, Atlanta Fed President Raphael Bostic, and Cleveland Fed President Beth Hammack emphasized that inflation remains a key risk, necessitating cautious easing.
Meanwhile, new Fed Governor Stephen Miran believes interest rates should be cut more aggressively, around two percentage points lower than current levels. He believes current monetary policy is too tight and could jeopardize the Fed's employment mandate.
With differing views within the Fed, investors are increasingly awaiting Powell's definitive direction. Any dovish signal could further depress the US dollar, while a hawkish tone could potentially lift USD/CHF from its current level. (ads)
Source: Newsmaker.id
