The USD/CHF currency pair starts to rise, reaching about 0.7685 in the early European session on Friday.
Democrats and the White House made an agreement to stop a partial government shutdown from happening.
Trump stated that the person chosen to lead the Federal Reserve next will be announced on Friday.
The USD/CHF pair goes up to almost 0.7685 early in the European session on Friday, because there is more demand for the US Dollar. This happened after US President Donald Trump and Senate Democrats made an agreement to prevent a government shutdown, which helps the US Dollar against the Swiss Franc. Later on Friday, the US December Producer Price Index (PPI) data will be closely watched.
The US Senate might vote as early as Thursday night to approve a government funding plan after Democrats agreed with President Donald Trump to remove the entire year-long spending proposal for the Department of Homeland Security. The US dollar has risen because of this news. But it's not clear how fast the House will handle these funding bills once the Senate sends them over. The government shutdown deadline is midnight on Friday.
Traders are keeping a close eye on the news about Trump's pick for the Fed Chair, which is expected to come out on Friday. The US president said on Thursday that he plans to announce his choice to take over as Fed Chair from Jerome Powell on Friday morning. Kevin Warsh, a former Fed Governor, is now seen as the most likely candidate after meeting with Trump at the White House.
On the other hand, if there are new worries about political instability in the US or increased tensions between countries, it might make safer currencies like the Swiss Franc more attractive, which could be bad for the pair.
The head of the Swiss National Bank, Martin Schlegel, says that if the Swiss franc keeps getting stronger, it might put more pressure on the central bank. Experts think the SNB will probably take a careful approach and wait for updated inflation forecasts before making any changes to their policies. They also say they won’t bring back negative interest rates for now.
Democrats and the White House made an agreement to stop a partial government shutdown from happening.
Trump stated that the person chosen to lead the Federal Reserve next will be announced on Friday.
The USD/CHF pair goes up to almost 0.7685 early in the European session on Friday, because there is more demand for the US Dollar. This happened after US President Donald Trump and Senate Democrats made an agreement to prevent a government shutdown, which helps the US Dollar against the Swiss Franc. Later on Friday, the US December Producer Price Index (PPI) data will be closely watched.
The US Senate might vote as early as Thursday night to approve a government funding plan after Democrats agreed with President Donald Trump to remove the entire year-long spending proposal for the Department of Homeland Security. The US dollar has risen because of this news. But it's not clear how fast the House will handle these funding bills once the Senate sends them over. The government shutdown deadline is midnight on Friday.
Traders are keeping a close eye on the news about Trump's pick for the Fed Chair, which is expected to come out on Friday. The US president said on Thursday that he plans to announce his choice to take over as Fed Chair from Jerome Powell on Friday morning. Kevin Warsh, a former Fed Governor, is now seen as the most likely candidate after meeting with Trump at the White House.
On the other hand, if there are new worries about political instability in the US or increased tensions between countries, it might make safer currencies like the Swiss Franc more attractive, which could be bad for the pair.
The head of the Swiss National Bank, Martin Schlegel, says that if the Swiss franc keeps getting stronger, it might put more pressure on the central bank. Experts think the SNB will probably take a careful approach and wait for updated inflation forecasts before making any changes to their policies. They also say they won’t bring back negative interest rates for now.
