USD/CHF FALLS TO NEAR 0.8500 AS RECENT DATA INCREASE ODDS OF A BUMPER FED RATE CUT
- USD/CHF depreciates as Friday’s US data reinforce the likelihood of an aggressive Fed rate cut in September.
- Former New York Fed President Bill Dudley suggested a strong case for a 50 basis points rate cut next week.
- Traders expect the SNB to deliver a 25 basis points rate cut at its September meeting.
USD/CHF extends its losses for the second successive session, trading around 0.8490 during the Asian hours on Friday. The decline of the USD/CHF pair could be attributed to the subdued US Dollar (USD) following Friday’s economic data from the United States (US) reinforced the odds of a bumper rate cut by the Federal Reserve (Fed) next week.
According to the CME FedWatch Tool, markets are fully pricing at least a 25 basis point (bps) rate cut by the Federal Reserve at its September meeting. The likelihood of a 50 bps rate cut has sharply increased to 41.0%, up from 14.0% a day ago.
The decline in the US Treasury yields also contributes to the downward pressure for the Greenback. The US Dollar Index (DXY), which measures the value of the US Dollar against its six major peers, trades around 101.10 with 2-year and 10-year yields on US Treasury bonds standing at 3.58% and 3.64%, respectively, at the time of writing.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.