The USD/CHF currency pair is showing slight increases and is trading close to 0.8010 during the early part of the European session on Wednesday.
The US CPI inflation report suggests that the Fed is likely to keep interest rates the same later this month.
People are worried about the Fed's independence and the tensions between countries, which might lead more investors to seek safe-haven assets, helping the Swiss Franc.
The USD/CHF pair slightly increases to around 0.8010 during the early European session on Wednesday. The US dollar gets stronger against the Swiss Franc (CHF) following US inflation data that matches expectations. Later on Wednesday, the release of the US Retail Sales and Producer Price Index (PPI) reports will be closely watched.
Data from the US Bureau of Labor Statistics (BLS) released on Tuesday showed that the US Consumer Price Index (CPI) went up by 2.7% year-over-year in December. This is the same as the increase in November and matches what was expected. The core CPI, which doesn't include food and energy prices that can change quickly, rose by 2.6% in December, slightly less than the 2.7% increase in November. On a monthly basis, the overall CPI increased by 0.3%, and the core CPI rose by 0.2%.
The US CPI inflation report strengthens the belief that the US Federal Reserve (Fed) will keep interest rates unchanged later this month, even though the White House is pushing hard for lower rates. This situation makes the US Dollar (USD) stronger compared to the Swiss Franc (CHF). Traders who bet on interest rate changes are not expecting a cut anytime soon, with the most likely time being June.
On the other hand, uncertainty about the Federal Reserve and geopolitical risks might increase demand for traditional safe-haven currencies like the Swiss franc. US President Donald Trump on Sunday warned Fed Chair Jerome Powell that he could face criminal charges. Meanwhile, the Iranian government has taken heavy action against big protests, with reports saying hundreds of people have died. Trump has also said he would get involved if the Islamic Republic harms protesters.
The US CPI inflation report suggests that the Fed is likely to keep interest rates the same later this month.
People are worried about the Fed's independence and the tensions between countries, which might lead more investors to seek safe-haven assets, helping the Swiss Franc.
The USD/CHF pair slightly increases to around 0.8010 during the early European session on Wednesday. The US dollar gets stronger against the Swiss Franc (CHF) following US inflation data that matches expectations. Later on Wednesday, the release of the US Retail Sales and Producer Price Index (PPI) reports will be closely watched.
Data from the US Bureau of Labor Statistics (BLS) released on Tuesday showed that the US Consumer Price Index (CPI) went up by 2.7% year-over-year in December. This is the same as the increase in November and matches what was expected. The core CPI, which doesn't include food and energy prices that can change quickly, rose by 2.6% in December, slightly less than the 2.7% increase in November. On a monthly basis, the overall CPI increased by 0.3%, and the core CPI rose by 0.2%.
The US CPI inflation report strengthens the belief that the US Federal Reserve (Fed) will keep interest rates unchanged later this month, even though the White House is pushing hard for lower rates. This situation makes the US Dollar (USD) stronger compared to the Swiss Franc (CHF). Traders who bet on interest rate changes are not expecting a cut anytime soon, with the most likely time being June.
On the other hand, uncertainty about the Federal Reserve and geopolitical risks might increase demand for traditional safe-haven currencies like the Swiss franc. US President Donald Trump on Sunday warned Fed Chair Jerome Powell that he could face criminal charges. Meanwhile, the Iranian government has taken heavy action against big protests, with reports saying hundreds of people have died. Trump has also said he would get involved if the Islamic Republic harms protesters.
