- USD/CHF falls for the third consecutive day amid USD selling bias post-FOMC.
- Geopolitical risks further benefit the safe-haven CHF and contribute to the decline.
- A positive risk tone discourages bears from opening new positions and helps limit losses.
The USD/CHF pair remains under some selling pressure for the third consecutive day on Thursday and drops to its lowest level since March 13, around the 0.8760 region during the Asian session. The decline validates the previous night’s downside break through the 0.8800 round figure and is sponsored by the US Dollar (USD) selling bias following the FOMC.
The Federal Reserve (Fed) decided to keep its benchmark interest rate in the range of 5.25%-5.50% while acknowledging the recent progress in inflation and slowing labor market. Moreover, Fed Chair Jerome Powell, speaking at the post-meeting press conference, noted the likelihood of an early rate cut if inflation remains in line with expectations. This, in turn, drags US Treasury bond yields to a multi-month low, keeping USD bulls on the defensive near a three-week low and proving to be a key factor putting pressure on the USD/CHF pair.
The Swiss Franc (CHF), on the other hand, is attracting some safe-haven flows amid the risk of further escalation of geopolitical risks in the Middle East. Meanwhile, prospects of an imminent start of the Fed policy easing cycle trigger a fresh impetus in equity markets. This could keep any significant appreciation move in the CHF at bay and help limit the downside of the USD/CHF pair. Nevertheless, the aforementioned fundamental backdrop favors the bears and suggests that the path of least resistance for spot prices is to the downside.
That said, investors are likely to wait for the release of the US monthly employment data, popularly known as the Non-Farm Payrolls (NFP) report, on Friday before placing fresh bets. Meanwhile, the USD/CHF pair remains at the mercy of the USD price dynamics and broader risk sentiment in the absence of any relevant market-moving economic data from the US on Thursday.
US Dollar PRICE Today
The table below shows the percentage change of the US Dollar (USD) against major currencies today. The US Dollar was the strongest currency against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.00% | 0.04% | -0.19% | -0.00% | 0.19% | -0.04% | -0.12% | |
| EUR | 0.00% | 0.04% | -0.21% | -0.01% | 0.21% | -0.03% | -0.12% | |
| GBP | -0.04% | -0.04% | -0.25% | -0.03% | 0.16% | -0.07% | -0.16% | |
| JPY | 0.19% | 0.21% | 0.25% | 0.20% | 0.41% | 0.12% | 0.05% | |
| CAD | 0.00% | 0.01% | 0.03% | -0.20% | 0.21% | -0.03% | -0.12% | |
| AUD | -0.19% | -0.21% | -0.16% | -0.41% | -0.21% | -0.23% | -0.33% | |
| NZD | 0.04% | 0.03% | 0.07% | -0.12% | 0.03% | 0.23% | -0.09% | |
| CHF | 0.12% | 0.12% | 0.16% | -0.05% | 0.12% | 0.33% | 0.09% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
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.
