- USD/CHF weakens near 0.8465 in early European session on Friday.
- Expectations of further rate cuts by the Fed continue to weaken the US dollar.
- Switzerland’s trade surplus was CHF 4.578 billion in August.
The USD/CHF pair is trading on a softer note around 0.8465 on Friday during the early European session. The Dollar is facing some selling pressure after the Federal Reserve’s (Fed) large-sized interest rate cut on Wednesday. Traders will take further cues from Fed’s Patrick Harker’s speech later on Friday.
The Fed decided to cut its key interest rate by 50 basis points (bps) on Wednesday, the first reduction since the COVID-19 pandemic. Fed Chair Jerome Powell said after the rate announcement that the U.S. central bank “is now time to recalibrate our policy to something that is more appropriate given the progress on inflation and employment moving to a more sustainable level.”
Fed officials also projected an additional half-point cut before the end of the year. This, in turn, could put some selling pressure on the US Dollar (USD).
On the Swiss front, Switzerland’s trade surplus was CHF 4.578 billion in August, according to the Federal Customs Office on Thursday. In addition, the country’s exports fell to CHF 20.491 billion in August and imports decreased to CHF 15.912 billion in the same reporting period.
Israeli fighter jets and artillery struck Hezbollah in southern Lebanon on Thursday. The action came after the militia’s pagers and walkie-talkies exploded last week, killing dozens and injuring thousands across Lebanon, according to CNBC. Any signs of escalating geopolitical risks in the region could boost safe-haven flows, benefiting the Swiss Franc (CHF).
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.
