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Swiss franc strengthens versus dollar as US data weakens Fed hike odds
USD/CHF was last around 0.8078, down nearly 0.18% on the day, after July ADP and ISM Services data missed expectations.
The Swiss franc gained versus the US dollar on Wednesday as weaker-than-expected US economic data weighed on the Greenback, according to FXStreet. At the time of writing, USD/CHF traded around 0.8078, down nearly 0.18% for the day.
US ADP employment change rose 44K in July, below expectations of 70K and slowing from 98K in June, while the ISM Services PMI edged up to 54.1 from 54 but came in under the 54.5 forecast. FXStreet also noted that oil prices stayed under pressure as traders monitored developments around efforts to reopen the Strait of Hormuz.
Meanwhile, expectations for a Federal Reserve rate hike this year cooled, with the CME FedWatch Tool putting the chance of a September hike at about 56%, down from 67% a day earlier. Traders are now watching Friday’s Nonfarm Payrolls report for additional clues on the Fed’s next move.
FXStreet added that on the Iran and Oman shipping-route proposal, an informed source told Fars News that an agreement would not automatically reopen the Strait, meaning uncertainty remains. On the Swiss side, July CPI rose 0.4% year over year, easing from 0.5% previously, supporting expectations that the SNB keeps its policy rate at zero.