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USD/CHF rises ahead of US PCE inflation data
The franc is pressured as markets look to US PCE, while Switzerland’s July inflation print held the Swiss National Bank on track to keep rates at 0% through 2027.
USD/CHF strengthened during Asian hours on Wednesday, with the pair trading around 0.8040 after earlier minor losses, as FXStreet reported that the US dollar gained support ahead of the upcoming US Personal Consumption Expenditures, the Federal Reserve’s key inflation measure.
Focus is also on Fed Chair Kevin Warsh’s speech at Jackson Hole on Friday for clearer signals on whether a rate adjustment could come in September. Commerzbank said the dollar stabilized after a Monday Treasury Secretary press conference that provided few details on which countries could face secondary sanctions and no timeline for implementation, helping calm immediate market nerves.
Further upside for the greenback may be limited if safe haven demand softens, FXStreet added. Separately, ING argued that a growing emphasis on stabilizing the Treasury market is more risk-positive, suggesting volatility could stay subdued and carry trade interest may remain firm.
FXStreet also noted that Swiss inflation dipped to 0.4% in July, keeping the Swiss National Bank on track to hold interest rates at 0% through 2027, with economists forecasting the first hike in early 2028 and markets anticipating one as early as March 2027.