Dollar Strengthens, Franc Under Pressure
The USD/CHF pair re-touched its monthly peak around 0.8010 during Wednesday's Asian session, as the US dollar continued to strengthen despite the US government shutdown entering its second week. The Dollar Index (DXY) rose around 0.3% to 98.90, a two-month high, putting pressure on the Swiss franc.
Market sentiment was also influenced by US President Donald Trump's statement that he was leaving open the option of cutting spending programs and signaling layoffs at federal agencies in the next four to five days. Investors await the FOMC minutes at 18:00 GMT. At the September meeting, the Fed cut interest rates by 25 bps to 4.00%–4.25% and signaled two more cuts this year. The CME FedWatch tool indicates an approximately 82% chance of two 25 bps cuts in the remaining two meetings of 2025.
In Switzerland, unemployment rose to 3% (from 2.9%) and inflation cooled with CPI -0.2% month-on-month. This weaker data adds to expectations that the SNB could ease further going forward, thus supporting USD/CHF while the US dollar is strong and global risks are high. (az)
Source: Newsmaker.id
