Forex
Home›Forex›Major Pairs›Swiss franc firms while USD/CHF holds near 0.8330
Swiss franc firms while USD/CHF holds near 0.8330
The Swiss franc strength comes as the FOMC’s hawkish posture and a rebound in US Treasury yields support the dollar, with 10-year and 30-year notes near 5.31% and 5.70% respectively.
USD/CHF paused after a three day winning streak, trading around 0.8330 during Asian hours on Thursday, while the Swiss franc firmed despite a steady US dollar backdrop, according to FXStreet.
FXStreet cited hawkish signals from Federal Open Market Committee messaging amid ongoing inflation risks. Minutes from the Fed’s September meeting showed unanimous support among all 19 policymakers for a September rate hike, and a majority suggested another increase would likely be appropriate by year end.
Even as markets widely expect rates to be on hold at the Fed’s October meeting, CME’s FedWatch tool still showed traders pricing a 78.3% probability of a December rate increase. FXStreet also noted US Treasury bond yields have rebounded toward multi decade highs not seen since 2002.
The report said investors are now watching upcoming remarks from Fed officials, including Christopher Waller and Alberto Musalem, for more guidance on the interest rate path. It added that the USD/CHF pair could still face limited downside as the dollar benefits from higher yields.