The post USD/CHF remains below 0.8900 due to the dovish mood surrounding the Fed appeared on BitcoinEthereumNews.com.

USD/CHF depreciates as traders expect the Fed to reduce rates in September. NBC News projected that Vice President Kamala Harris had secured endorsements from a majority of the Democratic Party’s delegates. The Swiss Franc may limit its upside as the SNB could deduct interest rates further. USD/CHF halts its three-day winning streak, trading around 0.8890 during the Asian session on Tuesday. The US Dollar (USD) faces pressure as expectations rise for a Federal Reserve (Fed) rate cut in September. Last week, Fed Chair Jerome Powell noted that the three US inflation readings this year “add somewhat to confidence” that inflation is on track to meet the Fed’s target sustainably, implying that interest rate cuts might be approaching. Additionally, Federal Reserve Bank of New York President John Williams remarked on Friday that the long-term trends leading to lower neutral interest rates before the pandemic are still in effect. Williams stated, “My own Holston-Laubach-Williams estimates for r-star in the United States, Canada, and the Euro area are about the same level as they were before the pandemic,” as reported by Bloomberg. On Monday, Democrats rallied behind Vice President Kamala Harris as the leading candidate for the presidential nomination. NBC News projected that Harris had secured endorsements from a majority of the Democratic party’s pledged convention delegates. The threshold for securing the nomination is 1,976 delegates, and NBC estimates that Harris has received the support of 1,992 delegates, either through spoken or written endorsements. On the CHF front, traders anticipate that the Swiss National Bank (SNB) might further reduce interest rates in September, which could exert downward pressure on the Swiss Franc (CHF). This potential rate cut is driven by subdued inflationary pressures and the resilience of the CHF. Kyle Chapman, FX markets analyst at Ballinger Group, commented, “I expect the SNB to…

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Filed under: News - @ July 23, 2024 6:08 am