In the early European session on Wednesday, the USD/CHF flat lines at 0.9130.
Powell of the Fed stated that the central bank is still not in a rush to cut interest rates.
The Swiss franc may gain from increased safe-haven flows brought on by the escalating geopolitical tensions in the Middle East.
During Wednesday's early European trading hours, the USD/CHF pair is trading flat at around 0.9130. Investors are awaiting more details about possible trade tariffs from US President Donald Trump. Later on Wednesday, the focus will be on the US Consumer Price Index (CPI) inflation data. Christopher Waller and Raphael Bostic of the Federal Reserve (Fed) are also expected to speak.
In testimony before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, Fed Chair Jerome Powell stressed that the US central bank does not have to make monetary policy changes quickly. Powell went on to say that policy is in a good position to handle risks and uncertainties.
Neil Shearing, group chief economist at Capital Economics, stated that "the uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025."
While the Core CPI inflation is predicted to decrease to 3.1% YoY in January from 3.2% in the previous reading, the US CPI is predicted to show an increase of 2.9% YoY in January compared to 2.9% previously. A hotter-than-expected result from the report might boost the US dollar (USD) generally.
The growing geopolitical unrest in the Middle East may benefit Switzerland's safe-haven currency, the Swiss franc (CHF). Benjamin Netanyahu, the prime minister of Israel, declared late Tuesday that if Hamas does not free "our hostages" by Saturday noon, the ceasefire will end and Israel will return to "intense fighting" in Gaza.
Powell of the Fed stated that the central bank is still not in a rush to cut interest rates.
The Swiss franc may gain from increased safe-haven flows brought on by the escalating geopolitical tensions in the Middle East.
During Wednesday's early European trading hours, the USD/CHF pair is trading flat at around 0.9130. Investors are awaiting more details about possible trade tariffs from US President Donald Trump. Later on Wednesday, the focus will be on the US Consumer Price Index (CPI) inflation data. Christopher Waller and Raphael Bostic of the Federal Reserve (Fed) are also expected to speak.
In testimony before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, Fed Chair Jerome Powell stressed that the US central bank does not have to make monetary policy changes quickly. Powell went on to say that policy is in a good position to handle risks and uncertainties.
Neil Shearing, group chief economist at Capital Economics, stated that "the uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025."
While the Core CPI inflation is predicted to decrease to 3.1% YoY in January from 3.2% in the previous reading, the US CPI is predicted to show an increase of 2.9% YoY in January compared to 2.9% previously. A hotter-than-expected result from the report might boost the US dollar (USD) generally.
The growing geopolitical unrest in the Middle East may benefit Switzerland's safe-haven currency, the Swiss franc (CHF). Benjamin Netanyahu, the prime minister of Israel, declared late Tuesday that if Hamas does not free "our hostages" by Saturday noon, the ceasefire will end and Israel will return to "intense fighting" in Gaza.
