USD/CHF trades below 0.8950 after pulling back from six-month highs
The post USD/CHF trades below 0.8950 after pulling back from six-month highs appeared on BitcoinEthereumNews.com.
USD/CHF retreats after hitting 0.8974, a level not seen since July 2024, on Tuesday. CME FedWatch tool suggests almost fully pricing in a quarter basis point cut at its December meeting. SNB reiterated commitment to ensuring price stability over the medium term and expressed readiness to adjust monetary policy if necessary. USD/CHF extends its losses after pulling back from a six-month high of 0.8974, reached on Tuesday. The pair trades around 0.8920 during the Asian hours on Wednesday. Traders are bracing for a potential 25 basis point rate cut by the US Federal Reserve (Fed) later in the North American session. According to the CME FedWatch tool, markets are now almost fully pricing in a quarter basis point cut at the Fed’s December meeting. Additionally, traders will closely monitor Fed Chair Jerome Powell’s press conference and Summary of Economic Projections (dot-plot) after the meeting. On Tuesday, the US Census Bureau reported that US Retail Sales rose 0.7% MoM in November, compared to the 0.5% prior increase. Meanwhile, the Retail Sales Control Group increased 0.4% from the previous decline of 0.1%. The Swiss Franc (CHF) came under pressure after the Swiss National Bank (SNB) unexpectedly cut its key interest rate by 50 basis points last week, surpassing expectations for a smaller reduction, as it seeks to address subdued inflation. The SNB reaffirmed its commitment to maintaining price stability over the medium term, signaling readiness to adjust monetary policy if needed. The central bank noted that “underlying inflationary pressure has decreased again this quarter,” with annual inflation declining from 1.1% in August to 0.7% in November, nearing the lower end of its target range of 0-2%. Switzerland’s State Secretariat for Economic Affairs (SECO) has revised its economic growth forecasts, projecting the Swiss economy to grow by 0.9% in 2023, down from the…
Filed under: News - @ December 18, 2024 6:21 am