USD/CHF ticks up to near 0.7900 as US Dollar edges higher
USD/CHF edges higher to near 0.7900 ahead of FOMC minutes.
The Fed is expected to cut interest rates by at least 50 bps in 2026.
The Swiss Franc trades subduedly in a holiday-truncated week.
The USD/CHF pair edges up to near 0.7900 during the late Asian trading session on Monday. The Swiss Franc pair trades mildly higher as the US Dollar (USD) ticks up, with the US Dollar Index (DXY) rising to near 98.15.
The US Dollar attracts bids even as traders remain confident that the Federal Reserve (Fed) will cut interest rates by at least 50 basis points (bps) in 2026.
According to the CME FedWatch tool, the odds of the Fed reducing interest rates by at least 50 bps in 2026 are 73.3%.
For fresh cues on the Fed’s monetary policy outlook, investors will focus on Federal Open Market Committee (FOMC) minutes of the December meeting, which will be published on Tuesday. In the policy meeting, the Fed reduced the Federal Funds Rate by 25 basis points (bps) to 3.50%-3.75%, and signaled one in 2026.
This week, investors will also focus on the United States (US) Initial Jobless Claims data, which will be released on Wednesday.
Meanwhile, the Swiss Franc (CHF) trades marginally lower against its peers at the start of the week. The Swiss currency ticks lower while markets remain illiquid amid a holiday mood. In 2026, the major trigger for the Swiss Franc will be whether the Swiss National Bank (SNB) will pivot to policy normalization after remaining ultra-dovish in 2025.
The above content was completed with the assistance of AI and has been reviewed by an editor.
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