11 Nov 2024

current;-0.87896
target ;-0.88600
sl;-0.87519

USD/CHF rises to approximately 0.8770 during the early European session on Monday.

The election victory of Donald Trump in the United States has offered some support to the USD.

Martin from the Swiss National Bank stated that the central bank has made "absolutely no commitment" regarding its future policy direction.
The USD/CHF currency pair has risen to approximately 0.8770, marking its highest level since August 1, during the early hours of trading in Europe on Monday. This upward trend is supported by the robust performance of the US Dollar (USD), as market participants await the release of US inflation data and remarks from Federal Reserve (Fed) officials later this week.

Analysts predict that the policies of former President Trump will exert upward pressure on US inflation and bond yields, while simultaneously slowing the Fed's trajectory towards easing monetary policy. Consequently, this scenario is likely to strengthen the Greenback against the Swiss Franc (CHF). JPMorgan economist Michael Feroli noted, "In light of this, we anticipate that the Fed will implement another 25 basis point cut at the December meeting, but will thereafter limit cuts to once per quarter, diverging from our earlier expectation of a 25 basis point cut at every meeting."

Market participants are keenly awaiting the US Consumer Price Index (CPI) report, scheduled for release on Wednesday. The headline CPI is projected to reflect a year-over-year increase of 2.6% for October, while the core CPI is expected to rise by 3.3% year-over-year during the same timeframe. Should the results exceed expectations, it may further diminish the likelihood of a rate cut in December, thereby bolstering the USD.

On Monday, Antoine Martin, Vice Chairman of the Swiss National Bank (SNB), stated that the central bank is not committed to further interest rate reductions in December, emphasizing that future decisions will be contingent upon prevailing conditions at that time. Market expectations suggest that the SNB may reduce rates by at least 25 basis points from the current level of 1% during its upcoming meeting on December 12.