USD/CHF Holds Positive Ground Above 0.9100 On Firmer US Dollar

Collection New Swiss Banknotes Issued 2017 — Stock Photo, Image

The USD/CHF pair gathers strength to around 0.9110 during the early European session on Monday. The US Federal Reserve (Fed) is expected to keep interest rates hold this year after the US January employment data, supporting the Greenback. Fed's Chair Powell testifies will be the highlight on Tuesday. Later on Wednesday, US Consumer Price Index (CPI) inflation data will be in focus. 

The US Dollar Index (DXY), which measures the USD against six other units, currently trades near 108.20, gaining 0.14% on the day. The US economy created 143K new jobs in January, missing economists' estimates of 170K jobs. However, the Unemployment Rate declined to 4.0% in January from 4.1% in December.

Furthermore, analysts said that tariff policies by the Trump administration could be inflationary and put further pressure on the Fed to keep interest rates elevated. Markets are pricing in 36 basis points (bps) of cuts this year, down from 42 bps after an upbeat payrolls report on Friday. This, in turn, contributes to the USD’s upside. 

The Swiss Franc (CHF) could appreciate in the coming months as the Swiss National Bank (SNB) is unlikely to return to negative interest rates, Commerzbank analyst Michael Pfister said in a note. The SNB might end its rate-cutting cycle with a policy rate of 0.0%, compared with 0.5% currently. Meanwhile, the global economic uncertainty and the ongoing geopolitical tensions in the Middle East could boost the safe-haven flows, benefiting the CHF. 


More By This Author:

EUR/GBP Tumbles To Near 0.8300 As Traders Brace For ECB’s Lagarde Speech
WTI Extends Downside Below $70.50 As US-China Trade War Intensifies
WTI Remains On The Defensive Near $71.00 Amid A Rise In US Oil Stockpiles, Concern About US-China Trade

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with