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Swiss franc firms as dollar eases ahead of Fed minutes
USD/CHF slipped to near 0.8100, from 0.8130 on Tuesday, as markets awaited the release of FOMC meeting minutes later Wednesday.
The Swiss franc strengthened modestly on Wednesday, with the US dollar pulling back against major peers, as traders braced for the release of the minutes from the Federal Reserve's July policy meeting later in the US session, FXStreet reports.
USD/CHF retreated to levels near 0.8100, down from 0.8130 on Tuesday, though it stayed well above August’s trading floor around 0.8040, while volatility remained subdued and sentiment leaned mildly risk-off.
FXStreet says the main catalyst for the day was the FOMC minutes. The Federal Open Market Committee kept interest rates on hold amid a divided committee and provided limited forward guidance, prompting investors to look for clues on the future rate path.
Rabobank analysts cited intervention threats and Switzerland’s near zero policy rates as factors that have reduced the franc’s appeal as a safe haven in recent months, and they said the market saw little risk of a Swiss National Bank rate hike over the next 12 months.