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The USD/CHF pair trades in negative territory near 0.8045 during the early European session on Tuesday. The prospect of a US interest rate cut in December weighs on the US Dollar (USD) against the Swiss Franc (CHF). Traders brace for the Swiss Consumer Price Index (CPI) inflation report on Wednesday, along with the US ADP Employment Change and US ISM Services Purchasing Managers Index (PMI) data. Weaker-than-expected US economic data and dovish comments from a US Federal Reserve (Fed) official have boosted the expectation of a rate reduction this month, which has dragged the Greenback lower. Financial markets are currently pricing in nearly an 85% chance of a 25 basis point (bps) rate cut, according to the CME FedWatch tool. Furthermore, a report that White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next Fed chair might contribute to the Greenback’s downside. Hassett is seen as a close ally who supports US President Donald Trump’s call for quicker and deeper interest rate reduction to stimulate the economy. Nonetheless, the Swiss Gross Domestic Product (GDP) contracted by 0.5% QoQ in the third quarter (Q3), compared to an expansion of 0.2% in the previous reading (revised from 0.1%), the State Secretariat for Economic Affairs (SECO) showed on Friday. This figure came in weaker than the -0.4% expected. The downbeat Swiss GDP data could undermine the CHF and cap the downside for the pair in the near term.  Swiss Franc FAQs The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015,…

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Filed under: News - @ December 2, 2025 6:28 am