Swiss Franc consolidates recent losses with the focus turning to Fed’s Warsh
- USD/CHF stalls below 0.8750, on track for a 0.45% weekly appreciation.
- US Dollar firms up as Fed officials push for higher interest rates ahead of Warsh's speech at Jackson Hole.
- On Thursday, Swiss data revealed that the labour market remains resilient despite Middle East uncertainty.
The Swiss Franc (CHF) trades marginally lower against a somewhat firmer US Dollar (USD) on Friday, with market volatility subdued as investors await the speech of the Federal Reserve (Fed) Chairman, Kevin Warsh, at the Jackson Hole Symposium, due later on the day. The USD/CHF pair trades practically flat just below 0.8750, on track for a 0.45% appreciation this week.
Markets are eager for further insight into the Fed’s plans to tame hot inflationary pressures, after the disappointment of the last monetary policy meeting, which left investors pondering whether the hawkish comments of Warsh’s inaugural speeches will be supported with facts.
Fed officials call for higher interest rates
Recent US inflationary data added pressure to hike interest rates, and some Federal Reserve officials supported that view on Thursday, putting some pressure on Warsh. Kansas Fed President Jeffrey Schmidt said on CNBC that inflation is “still sticky and we've got to continue to find ways to break through" while the Cleveland Fed President Beth Hammack reiterated that it is “time to act,” referring to interest rate hikes, which provided a moderate boost to the USD.
Rabobank’s Bas van Geffen remains sceptical over how much guidance FOMC Chair Warsh will offer at Jackson Hole. Van Geffen wonders whether he will stick to his script or instead “feel compelled to be a bit more outspoken, after Treasury Secretary Bessent’s interventions in the rates market pushing back against the long end of the Treasury curve.” For Rabobank, “the lack of a monetary policy panel in this year’s schedule suggests that Warsh will stick with the first option,” reinforcing expectations that clear policy signals may remain in short supply.
The Swiss Franc, on the other hand, failed to draw support from the upbeat Swiss employment figures released on Thursday, which suggest that the Swiss labour market is withstanding the energy shock and the uncertainty from the Middle East conflict quite well.
Economic Indicator
Fed's Chair Warsh speech
Kevin Warsh took office as chairman of the Board of Governors of the Federal Reserve in May 2026, for a four-year term ending in 2030. His term as a member of the Board of Governors will expire in May 2040. Warsh, born in Albany (New York) on April 13, 1970, is an American financier and attorney who already served as a member of the Fed Board of Governors from 2006 to 2011 and was significantly involved in the central bank's response to the financial crisis.
Read more.Next release: Fri Aug 28, 2026 14:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Federal Reserve
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
