- USD/CHF consolidates around 0.9050 amid uncertainty over the Fed’s interest rate hike.
- The SNB kept interest rates unchanged at 1.75% for the first time since March 2022.
- Looking ahead, investors will focus on the US S&P Global PMIs for September.
The pair USD/CHF traded in a tight range near 0.9050 late in the European session. The Swiss Franc has remained bullish overall, as the Swiss National Bank (SNB) announced a stable interest rate decision on Thursday, keeping interest rates at 1.7%, while investors anticipated a rate hike. interest rate at 25 basis points (bp) up to 2%.
SNB Chairman Thomas J. Jordan and other policymakers decided to pursue stable monetary policy for the first time since March 2022, when the central bank began its rate tightening cycle to cool inflationary pressures.
Regarding the outlook for interest rates, the SNB left the doors open to further tightening of monetary policy. SNB Jordan cited that the current inflation situation has given us time to assess whether the measures taken to date are sufficient to keep inflation comfortably below 2%.
Meanwhile, S&P 500 futures generated some decent gains in the London session, portraying a nominal improvement in the attractiveness of risk assets. The Dollar Index (DXY) is trending sideways as uncertainty over peak interest rates has risen following the Federal Reserve’s (Fed) outlook.
The DXY’s rise appears restrained for now as investors see no signs of an increase from the Fed in its November monetary policy. Looking ahead, investors will focus on S&P Global’s preliminary September PMIs, due at 13:45 GMT.
According to the preliminary report, the manufacturing PMI improved slightly to 48.0 from 47.9 in August. For its part, the PMI for services, a sector that represents two-thirds of the US economy, is expected to increase to 50.6 from 50.5 in August.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
