Created
: 2025.07.30
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CHF drifts lower to near 0.8050 as traders brace for Fed rate decision
World FX news
Breaking news
USD/CHF drifts lower to near 0.8050 as traders brace for Fed rate decision
2025.07.30 14:22
2025.07.30 14:22
- USD/CHF softens to near 0.8055 in Wednesday's Asian session.
- Markets expect the Fed to leave the interest rate unchanged at its July meeting.
- US economic growth is estimated to have rebounded in the second quarter.
The USD/CHF pair trades in negative territory around 0.8055 during the early European session on Wednesday. Markets turn cautious ahead of the US Federal Reserve (Fed) interest rate decision and the US tariff deadline.
The Fed is anticipated to leave interest rates unchanged at its policy meeting later on Wednesday, though it could see a rare dissent by some Fed officials in favor of lower borrowing costs. Investors are already pricing in the odds of a rate cut in September at more than 60%, according to pricing in federal funds futures contracts.
"With labor market conditions near full employment, most Fed officials want to wait and see how tariffs impact inflation," said Tom Kenny, senior international economist at ANZ in Sydney.
The Greenback edges lower after trade talks between the US and China ended without any substantive agreement. US Treasury Secretary Scott Bessent said that the US and China will continue talks over maintaining a tariff truce before the deadline in two weeks, and Trump will make the final decision on any extension. Any signs of escalating trade tensions could boost the safe-haven demand, supporting the Swiss Franc.
Traders will also keep an eye on the preliminary reading of the US Gross Domestic Product (GDP) report. The US economy is expected to grow at an annual rate of 2.4% in the second quarter (Q2), compared to a contraction of 0.5% in Q1. In case of a stronger-than-expected outcome, this could help limit the USD's losses in the near term.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland's official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country's economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc's value, causing a turmoil in markets. Even though the peg isn't in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country's currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year - once every quarter, less than other major central banks - to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc's (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank's currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland's main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
Last updated
: 2025.07.30
Related articles
Canadian Dollar extends gains as risk-on flows rebound
2025.08.28 03:49Forex Today: US Q2 GDP and the labour market take centre stage
2025.08.28 03:21Australian Dollar rises toward 0.6500 as US Dollar weakens
2025.08.28 02:44GBP/USD dips to 1.3457 as Fed turmoil boosts Dollar rebound
2025.08.28 00:27EUR/USD slips below 1.1600 as Greenback holds firm despite Trump-Fed tensions
2025.08.27 23:23EUR/JPY rangebound as focus turns to Eurozone sentiment and Japan CPI
2025.08.27 22:07
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Canadian Dollar extends gains as risk-on flows rebound
The Canadian Dollar (CAD) drifted higher on Wednesday, driven by a general upswing in broad-market sentiment that pushed the safe-haven US Dollar (USD) into a holding pattern. The Loonie has risen for three out of the last four trading sessions, extending a near-term CAD bounce from recent lows.
New
2025.08.28 03:49WTI Crude Oil climbs as EIA inventory draw and weaker Greenback fuel recovery
WTI (West Texas Intermediate) Crude Oil is rebounding on Wednesday after a sharp 2.27% drop in the previous session. At the time of writing, the US benchmark trades near $64.00 per barrel, up 1.2% on the day and recovering from a five-day low of $62.80 hit earlier in European trading hours.
New
2025.08.28 03:43Dow Jones Industrial Average resumes upwards equity grind
The Dow Jones Industrial Average (DJIA) drifted upwards on Wednesday as global equities grind their way higher heading through the midweek lull.
New
2025.08.28 03:35Forex Today: US Q2 GDP and the labour market take centre stage
The US Dollar (USD) ended the day alternating gains with losses, giving away strong gains recorded earlier in the day on Wednesday. This irresolute price action came amid unabated concerns surrounding the Fed's independence and the absence of important developments on the trade front.
New
2025.08.28 03:21Gold holds near $3,400 as Fed bets, politics weigh
Gold price remains steady on Wednesday, even though the Greenback recovered from earlier losses triggered by threats to the Federal Reserve's (Fed) independence. Nevertheless, Bullion sellers are not out of the woods as pressure from the White House continues. The XAU/USD trades at $3,397, up 0.12%.
New
2025.08.28 03:10Australian Dollar rises toward 0.6500 as US Dollar weakens
The Australian Dollar (AUD) rebounds sharply on Wednesday after edging lower earlier in the day, as the US Dollar (USD) gave up some of its intraday strength.
New
2025.08.28 02:44Silver Price Forecast: Bulls defend $38.00 as triangle support holds, momentum remains fragile
Silver (XAG/USD) trades slightly lower on Wednesday, having trimmed earlier losses after finding support near the $38.00 handle. The metal came under pressure earlier in the session as a stronger US Dollar (USD) capped upside momentum.
New
2025.08.28 00:30GBP/USD dips to 1.3457 as Fed turmoil boosts Dollar rebound
The GBP/USD dropped over 0.16% on Wednesday as the US dollar continued to recover some ground, courtesy of the White House's threats to the independence of the Federal Reserve (Fed), which triggered a rise on the long end of US Treasury bond yields.
New
2025.08.28 00:27EUR/USD slips below 1.1600 as Greenback holds firm despite Trump-Fed tensions
The Euro (EUR) came under renewed pressure against the US Dollar (USD) on Wednesday as a stronger Greenback, soft German Consumer Confidence data, and escalating political tensions in France weighed on the single currency, with EUR/USD slipping below the key 1.1600 psychological mark.
New
2025.08.27 23:23EUR/JPY rangebound as focus turns to Eurozone sentiment and Japan CPI
The Euro (EUR) recovers some lost ground against the Japanese Yen (JPY) on Wednesday, with EUR/JPY trading near 171.76 at the time of writing. The cross had slipped to a one-week low earlier in the day after disappointing German Consumer Confidence data briefly pressured the single currency.
New
2025.08.27 22:07Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
