USD/CHF Price Forecast: Extends recovery above 0.8850
USD/CHF recovers further above 0.8850 as the US Dollar bounces back strongly.
Traders doubt whether the Fed will cut interest rates in December.
USD/CHF finds a cushion near the 50% Fibo retracement around 0.8800.
The USD/CHF pair extends its recovery above 0.8850 in the North American trading session on Wednesday. The Swiss Franc pair rises as the US Dollar (USD) bounces back strongly amid doubts about whether the Federal Reserve (Fed) will continue its policy-easing cycle in the December meeting.
According to the CME FedWatch tool, trades see a 59% chance that there will be 25 basis points (bps) interest rate cut next month, which will push interest rates lower to 4.25%-4.50%. The probability of a Fed rate cut has diminished from 82.5% a week ago as investors expect President-elect Donald Trump’s economic agenda will boost inflation in the United States (US) along with its economic growth.
Meanwhile, global brokerage firm Nomura expects the Fed to pause the policy-easing cycle in December. "We currently expect tariffs will drive realized inflation higher by the summer, and risks are skewed towards an earlier and more prolonged pause,” analysts at Nomura said.
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.