USD/CHF holds positive ground near 0.9100, eyes on US PCE release
The post USD/CHF holds positive ground near 0.9100, eyes on US PCE release appeared on BitcoinEthereumNews.com.
USD/CHF posts modest gains to around 0.9100 in Friday’s early European session. The US economy grew at a slower-than-expected pace in Q4. The safe-haven flows could support the Swiss Franc. The USD/CHF pair trades with mild gains to near 0.9100 during the early European session on Friday. The hawkish hold from the US Federal Reserve (Fed) provides some support to the US Dollar (USD). Investors will take more cues from the US December Personal Consumption Expenditures (PCE) inflation data, which is due later on Friday. Also, Fed Governor Michelle Bowman is set to speak. The US central bank left interest rates unchanged Wednesday. Fed Chair Jerome Powell said in a press conference that the US economy remains strong, while inflation remains somewhat elevated. Therefore, the central bank doesn’t need to be in a hurry to adjust its policy stance. Following the January Fed meeting, the markets see less than a 50% odds that the Fed will cut rates before its June meeting, per the CME FedWatch Tool. This, in turn, lift the Greenback against the Swiss Franc (CHF). Nonetheless, the downbeat US Gross Domestic Product (GDP) data undermines the USD. The Bureau of Economic Analysis’s advance estimate of fourth quarter US GDP revealed the US economy expanded at an annualized pace of 2.3% in Q4, below the 2.6% growth estimated. The reading came in weaker than the 3.1% growth seen in Q3. A ceasefire between Israel and Hamas in Gaza went into effect a week ago. Meanwhile, Lebanon the November ceasefire in Lebanon is holding despite ongoing Israeli airstrikes on Hezbollah targets. Investors will closely monitor the development surrounding geopolitical risks in the Middle East. Any signs of escalating geopolitical tensions in the region could boost the safe-haven flows, benefitting the Swiss Franc. Swiss Franc FAQs The Swiss Franc (CHF) is Switzerland’s official currency.…
Filed under: News - @ January 31, 2025 6:17 am