USD/CHF Pushes Higher on Dollar Strength, Eyes on US CPI for Rate Insights

Image Credit: Blake Harris Law

The USD/CHF currency pair finds buying interest near 0.8810 in the early European session on Tuesday, with support coming from a broadly stronger US Dollar.

The US Dollar Index (DXY), which measures the USD’s strength against a basket of six major currencies, reached a four-month high around 105.70. Investors are eyeing remarks later today from Federal Reserve officials—Christopher Waller, Thomas Barkin, Neel Kashkari, and Patrick Harker—as well as the upcoming US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI) on Wednesday, which may shed light on the Fed's rate strategy.

Former President Donald Trump’s proposed economic policies, such as tax cuts, trade tariffs, and increased government spending, are seen as potentially inflationary, which could influence the Fed to slow its pace of interest rate reductions. This outlook could further support the USD against the Swiss Franc.

On the Swiss side, Swiss National Bank (SNB) Vice Chairman Antoine Martin stated on Monday that the bank is not committed to further rate cuts in December, emphasizing the need for flexibility in policy communications. Market expectations currently suggest the SNB may lower rates by 25 basis points from the current 1% level at its December 12 meeting.

Paraphrasing text from "FXSTREET"all rights reserved by the original author.