The USD/CHF exchange rate remains close to the monthly peak of approximately 0.8070.
This year, the Fed is anticipated to decrease interest rates twice more.
It is less likely that the SNB will cause interest rates to drop.
In Friday's late Asian session, the USD/CHF pair continues to rise close to a new monthly high of 0.8070 that was recorded on Thursday. Despite optimistic hopes that the Federal Reserve (Fed) would further lower interest rates in the remaining year, the Swiss franc pair is trading steadily as the US dollar (USD) has extended its surge.
As of this writing, the US Dollar Index (DXY), which measures the value of the US dollar relative to six major currencies, is still holding onto gains close to the two-month high of 99.50 that was recorded on Thursday.
With two monetary policy meetings left this year, traders see an 81.5% chance of seeing the Fed lower interest rates by 25 basis points (bps), according to the CME FedWatch tool.
Fed dovish bets have remained upbeat as latest commentaries from members of the Federal Open Market Committee (FOMC) have signaled that they have become more concerned about downside labour market risks, while remaining confident that consumer inflation expectations are anchored.
According to The New York Times (NYT), New York Fed Bank President John Williams issued a labor market warning on Thursday, stating that businesses are reluctant to hire new employees, which highlights the necessity for additional interest rate reduction this year.
The preliminary October Consumer Sentiment Index and Consumer Inflation Expectations data, which will be released at 14:00 GMT, will be the main focus of Friday's session for investors.
Concerns that the Swiss National Bank (SNB) would drive interest rates into negative territory are waning as inflation is predicted to increase in the upcoming quarters. According to recent remarks made by SNB Chairman Martin Schlegel, consumer inflation may pick up speed in the upcoming quarters.
This year, the Fed is anticipated to decrease interest rates twice more.
It is less likely that the SNB will cause interest rates to drop.
In Friday's late Asian session, the USD/CHF pair continues to rise close to a new monthly high of 0.8070 that was recorded on Thursday. Despite optimistic hopes that the Federal Reserve (Fed) would further lower interest rates in the remaining year, the Swiss franc pair is trading steadily as the US dollar (USD) has extended its surge.
As of this writing, the US Dollar Index (DXY), which measures the value of the US dollar relative to six major currencies, is still holding onto gains close to the two-month high of 99.50 that was recorded on Thursday.
With two monetary policy meetings left this year, traders see an 81.5% chance of seeing the Fed lower interest rates by 25 basis points (bps), according to the CME FedWatch tool.
Fed dovish bets have remained upbeat as latest commentaries from members of the Federal Open Market Committee (FOMC) have signaled that they have become more concerned about downside labour market risks, while remaining confident that consumer inflation expectations are anchored.
According to The New York Times (NYT), New York Fed Bank President John Williams issued a labor market warning on Thursday, stating that businesses are reluctant to hire new employees, which highlights the necessity for additional interest rate reduction this year.
The preliminary October Consumer Sentiment Index and Consumer Inflation Expectations data, which will be released at 14:00 GMT, will be the main focus of Friday's session for investors.
Concerns that the Swiss National Bank (SNB) would drive interest rates into negative territory are waning as inflation is predicted to increase in the upcoming quarters. According to recent remarks made by SNB Chairman Martin Schlegel, consumer inflation may pick up speed in the upcoming quarters.
