USD/CHF Rises To Around 0.8950 As Fed’s Hawkish Sentiment Boosts

USD/CHF retraced its losses from the previous session following hawkish comments from the US Federal Reserve (Fed). The Federal Open Market Committee (FOMC) kept its benchmark lending rate in the range of 5.25%-5.50% for the seventh consecutive time at its policy meeting on Wednesday, as widely expected. The pair moved higher to around 0.8950 in Asian trading on Thursday.

However, the dollar faced challenges after the release of softer inflation data from the US. The US Consumer Price Index (CPI) rose 3.3% year-on-year in May, slightly lower than the previous reading and the expected 3.4%. The core CPI, which excludes volatile food and energy prices, rose 3.4% year-on-year in May, compared with 3.6% in April and 3.5% expected.

Fed Chairman Jerome Powell noted in a press conference after the Fed’s decision that the restrictive stance of monetary policy is having the expected impact on inflation. “So far this year, we have not had greater confidence in inflation to the point where we would need to cut interest rates,” Powell added.

In Switzerland, the Swiss National Bank (SNB) is unlikely to implement a rate cut in June, which may provide support for the Swiss franc (CHF). Earlier, SNB Chairman Thomas J. Jordan warned that inflation expectations would face a slight upside risk.

Traders are looking forward to the SNB Financial Stability Report on Thursday, which will assess the stability of the banking sector and financial market infrastructure. In addition, producer and import price data will also be watched.

USD latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright