Created
: 2025.09.22
- 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 retreats below 0.7950 with Fed speakers on focus
World FX news
Breaking news
USD/CHF retreats below 0.7950 with Fed speakers on focus
New
2025.09.22 19:12
2025.09.22 19:12
2025.09.22 19:12
- The US Dollar retreats from 0.7970 highs against the Swiss Franc and turns negative on the day.
- Investors have trimmed US Dollar longs, awaiting speeches from Fed officials.
- In Switzerland, the SNB's monetary policy decisions are likely to set the CHF's near-term direction.
The US Dollar rally against the Swiss franc was capped at 0.7970 on Monday, and the pair retreated to levels right below 0.7945 as market sentiment deteriorated during the European Session, with all eyes on a slew of Fed speakers due later today.
Five Fed Governors are scheduled to give further details about the bank´s monetary policy plans. The main focus will be on the newest member, Stephen Miran, who is expected to delve into the reasons that prompted him to dissent from the committee and vote for a 50 basis points rate cut last week.
These speeches will frame the Chairman Powell's conference, due on Tuesday. The tone of Powell's press release contrasted with the bank's dovish projections and provided a fresh impulse to the US Dollar. Investors will be very attentive to his comments on Tuesday to corroborate their bets on back-to-back rate cuts.
In Switzerland, the main focus is on the SNB's monetary policy decision, due on Thursday. The bank is widely expected to leave its benchmark interest rate at 0%. The market will be eager to know the chances of cutting further into negative territory amid the recent weak macroeconomic data and the uncertainty around the trade relations with the US.
Central banks FAQs
Central Banks have a key mandate which is making sure that there is price stability in a country or region. Economies are constantly facing inflation or deflation when prices for certain goods and services are fluctuating. Constant rising prices for the same goods means inflation, constant lowered prices for the same goods means deflation. It is the task of the central bank to keep the demand in line by tweaking its policy rate. For the biggest central banks like the US Federal Reserve (Fed), the European Central Bank (ECB) or the Bank of England (BoE), the mandate is to keep inflation close to 2%.
A central bank has one important tool at its disposal to get inflation higher or lower, and that is by tweaking its benchmark policy rate, commonly known as interest rate. On pre-communicated moments, the central bank will issue a statement with its policy rate and provide additional reasoning on why it is either remaining or changing (cutting or hiking) it. Local banks will adjust their savings and lending rates accordingly, which in turn will make it either harder or easier for people to earn on their savings or for companies to take out loans and make investments in their businesses. When the central bank hikes interest rates substantially, this is called monetary tightening. When it is cutting its benchmark rate, it is called monetary easing.
A central bank is often politically independent. Members of the central bank policy board are passing through a series of panels and hearings before being appointed to a policy board seat. Each member in that board often has a certain conviction on how the central bank should control inflation and the subsequent monetary policy. Members that want a very loose monetary policy, with low rates and cheap lending, to boost the economy substantially while being content to see inflation slightly above 2%, are called 'doves'. Members that rather want to see higher rates to reward savings and want to keep a lit on inflation at all time are called 'hawks' and will not rest until inflation is at or just below 2%.
Normally, there is a chairman or president who leads each meeting, needs to create a consensus between the hawks or doves and has his or her final say when it would come down to a vote split to avoid a 50-50 tie on whether the current policy should be adjusted. The chairman will deliver speeches which often can be followed live, where the current monetary stance and outlook is being communicated. A central bank will try to push forward its monetary policy without triggering violent swings in rates, equities, or its currency. All members of the central bank will channel their stance toward the markets in advance of a policy meeting event. A few days before a policy meeting takes place until the new policy has been communicated, members are forbidden to talk publicly. This is called the blackout period.
Last updated
: 2025.09.22
Related articles
EUR/GBP eases to 0.8730 lows as German busines sentiment worsens
6 minutes agoEUR/JPY moves sideways around 174.50 following disappointing German IFO data
13 minutes agoAUD/USD jumps to near 0.6630 even as US Dollar trades firmly
21 minutes agoPound Sterling weakens amid disappointing UK economic data
54 minutes agoUSD/CAD extends gains beyond 1.3850 as markets turn cautious
2025.09.24 16:24EUR/USD eases within previous ranges as markets look for direction
2025.09.24 16:14
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
EUR/GBP eases to 0.8730 lows as German busines sentiment worsens
The Euro is trading lower across the board following an unexpected decline in the German IFO Business Climate Index on Wednesday.
New
2025.09.24 18:01EUR/JPY moves sideways around 174.50 following disappointing German IFO data
EUR/JPY maintains its position near the 14-month high of 174.65 during the European hours on Wednesday. The currency cross moves sideways after the release of the disappointing headline German IFO Business Climate Index, which unexpectedly fell to 87.7 in September from 89.0 in August.
New
2025.09.24 17:54AUD/USD jumps to near 0.6630 even as US Dollar trades firmly
The AUD/USD pair climbs to near 0.6630 during the European trading session on Wednesday. The Aussie pair strengthens, even as the US Dollar (USD) trades firmly, following comments from Federal Reserve (Fed) Chair Jerome Powell on Tuesday in which he reiterated caution on further interest rate cuts.
New
2025.09.24 17:46Pound Sterling weakens amid disappointing UK economic data
The Pound Sterling (GBP) declines to near 1.3485 against the US Dollar (USD) during the European trading session on Wednesday.
New
2025.09.24 17:14WTI Price Forecast: Tests 50-day EMA barrier after breaking above $63.50
West Texas Intermediate (WTI) Oil price extends its gains for the second successive session, trading around $63.60 per barrel during the European hours on Wednesday.
New
2025.09.24 17:11Dow Jones Futures hesitate as markets turn cautious
Dow Jones Index futures are wavering near Tuesday's closing levels, around the 46,300 area, during the early European session on Wednesday.
New
2025.09.24 17:06Silver Price Forecast: XAG/USD rebounds above $44.00 near 14-year highs
Silver price (XAG/USD) recovers its daily losses, trading around $44.10 per troy ounce during the European hours on Wednesday.
New
2025.09.24 16:36USD/CAD extends gains beyond 1.3850 as markets turn cautious
The US Dollar rallies for the third consecutive day against its Canadian counterpart, hitting its highest price in nearly two weeks at levels beyond 1.3850.
New
2025.09.24 16:24EUR/USD eases within previous ranges as markets look for direction
EUR/USD has pulled back to the 1.1800 area at the time of writing on Wednesday, from weekly highs near the 1.1820.
New
2025.09.24 16:14ECB's Cipollone: Risks to inflation are very balanced
European Central Bank (ECB) Executive Board member Piero Cipollone said that the central bank doesn't see major threats to inflation in either direction, adding that interest rates are currently well positioned, Bloomberg reported on Wednesday.
New
2025.09.24 15:59Disclaimer:
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
