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USD/CHF remains calm due to thin trading as investors adopt a cautious stance ahead of the Federal Reserve’s (Fed) interest rate decision scheduled on Wednesday. The pair hovers around 0.8950 during the early European hours on Tuesday.The Fed is anticipated to keep interest rates steady in the range of 5.25%-5.50% as it aims to curb inflation toward its 2% target. Additionally, the US headline and core CPI figures for May are estimated to show year-over-year increases of 3.4% and 3.5%, respectively.The robust US jobs data for May has reduced the odds of two Federal Reserve (Fed) interest rate cuts in 2024. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in September by at least 25 basis points has decreased to nearly 49.0%, down from 59.5% a week earlier.In Switzerland, the Consumer Confidence indicator remained relatively unchanged at -38 in May, compared to -38.1 in April, and falling short of forecasts of -37. Traders are now anticipating the Financial Stability Report from the Swiss National Bank (SNB), which will provide an assessment of the banking sector’s stability and the financial market infrastructure.The Swiss National Bank (SNB) is unlikely to implement an interest rate cut in June, despite inflation remaining below the 2% threshold. Previously, SNB Chairman Thomas J. Jordan warned of minor upside risks to inflation expectations.
USD/CHF
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