The post USD/CHF gains ground near 0.8850, potential upside seems limited appeared on BitcoinEthereumNews.com.

USD/CHF holds positive ground near 0.8840 in Thursday’s early European session.  Fed’s Waller said that central bank is nearing rate cuts if there are no major surprises in inflation, employment data. The rate cuts expectation by the SNB might drag the US Dollar lower.  The USD/CHF pair trades on a positive note around 0.8840, snapping the two-day losing streak on Thursday during the early European trading hours. The modest rebound of the US Dollar (USD) provides some support to the pair. Looking ahead, traders will take more cues from the weekly Initial Jobless Claims and Philly Fed Manufacturing Index.  The recent dovish comments from Federal Reserve (Fed) officials boost bets of a US interest rate cut in September and might cap the upside for Greenback in the near term. Markets are fully pricing in a rate cut of at least 25 basis points (bps) by the Fed in September, according to CME’s FedWatch Tool. Fed Governor Christopher Waller said that the US central bank is nearing an interest rate cut as long as there are no major surprises in inflation and employment data. Meanwhile, Richmond Fed President Thomas Barkin stated that easing in inflation has begun to broaden and he would like to see it continue. Earlier this week, Fed Chair Jerome Powell said recent inflation readings “add somewhat to confidence” that the pace of price increases is on track to meet the Fed’s target in a sustainable manner, suggesting a shift to rate cuts is on the horizon.  On the Swiss front, the safe-haven flows amid the political uncertainty and geopolitical tensions might lift the Swiss Franc (CHF) and create a headwind for USD/CHF. However, the expectation that the Swiss National Bank (SNB) could cut further interest rates might weigh on the CHF. Kyle Chapman, FX markets analyst at…

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Filed under: News - @ July 18, 2024 11:22 am