- USD/CHF is trading lower near 0.8460 in the Asian session on Wednesday.
- Lower expectations of a deeper Fed rate cut could limit the pair’s decline.
- Rising geopolitical risks could boost the Swiss Franc.
The USD/CHF pair is trading with slight losses around 0.8460 during the early European session on Wednesday. Rising geopolitical tensions in the Middle East boost safe haven currency like the Swiss Franc (CHF). Traders will take further cues from US ADP employment change data for September later on Wednesday.
Reduced bets on a 50 basis point (bps) rate cut by the Federal Reserve (Fed) in November could support the USD against the CHF. Fed Chair Jerome Powell signaled Monday that the US central bank intends to do what is necessary to keep the economy “in good shape,” but is in no rush and will lower its benchmark rate “with time.”
Friday’s US jobs report will be in focus. If the jobs report shows a worse-than-expected result, this could lead the central bank to consider cutting rates deeper, which could put some selling pressure on the USD.
Iran has launched hundreds of missiles toward Israel, and Prime Minister Benjamin Netanyahu vows to retaliate against Iran for a missile attack on Tuesday. US President Joe Biden reaffirmed US support for Israel after the missile attack, describing it as “defeated and ineffective”. Rising geopolitical tensions send investors to safe haven assets like CHF and create a headwind for USD/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.
