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USD/CHF slips for a third straight day as Fed-hike odds steady

CME FedWatch pricing shows about a 60% chance of a Fed rate hike at the next meeting, while oil price gains tied to attacks near Iranian tankers keep inflation worries elevated.

Reported · Written up by our desk · Major Pairs

USD/CHF is weaker for the third consecutive day, trading around 0.8090 during Asian hours on Wednesday, with the Swiss franc firm even as the US dollar holds losses despite a hawkish tone in the Federal Reserve policy outlook, according to FXStreet.

FXStreet cited the CME FedWatch Tool, saying traders are pricing about a 60% chance of a US interest rate hike at the Fed’s upcoming policy meeting. The pair also looks ahead to US PPI and CPI inflation data later this week, which could influence the Fed’s next steps ahead of the September meeting.

FXStreet noted that rising crude prices are adding to inflation concerns and supporting rate hike expectations. The move in oil followed a US strike on several Iranian tankers near Kharg Island, which has heightened geopolitical tensions and raised worries about potential disruptions to global oil supplies.

FXStreet also pointed to Swiss inflation, saying it doubled in August amid persistent Middle East tensions that pushed energy prices higher. The article added that the spike is expected to be temporary, with electricity prices projected to drop by about 4% next year, and referenced UOB Group’s view that USD/CHF is likely to stay rangebound between 0.8055 and 0.8155 over the next one to three weeks.

Latest closeWTI crude $94.28 ▲3.1%

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