Created
: 2025.09.29
- 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 falls to near 0.7950, awaits updates on US government shutdown risks
World FX news
Breaking news
USD/CHF falls to near 0.7950, awaits updates on US government shutdown risks
New
2025.09.29 14:13
2025.09.29 14:13
2025.09.29 14:13
- USD/CHF loses ground as the Greenback extends its losses due to US government shutdown risks.
- The US August inflation report increased the likelihood of the Fed delivering a rate cut in October.
- Traders expect the SNB to keep rates to stay at zero through next year amid low domestic inflation.
USD/CHF extends its gains for the second successive session, trading around 0.7960 during the Asian hours on Monday. The pair depreciates as the US Dollar (USD) continues to lose ground amid market caution, driven by shutdown risks of the United States (US) government.
US President Donald Trump is set to meet congressional leaders on Monday to discuss government funding. The shutdown could begin on October 1 in case of no deal, which will also coincide with new tariffs on trucks, pharmaceuticals, and more. The standoff could also delay the September payrolls report and other key data, per Reuters.
The US Dollar (USD) loses ground after the US August inflation report boosted the likelihood that the US Federal Reserve (Fed) will likely deliver another interest rate cut in October. Markets are now pricing in nearly an 88% chance of a Fed rate cut in October and a 65% possibility of another reduction in December, according to the CME FedWatch Tool.
The US Personal Consumption Expenditures (PCE) Price Index rose 2.7% year-over-year in August, as expected. The precious reading was a 2.6% increase. Meanwhile, the core PCE, which excludes food and energy prices, came in at 2.9% YoY during the same period, also matching expectations.
Last week, the Swiss National Bank (SNB) held its policy rate at 0%, pausing after six cuts since March 2024. Economists largely see the easing cycle as over, expecting rates to stay at zero through next year amid low domestic inflation and risks from slowing global growth and trade tensions.
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
: 2025.09.29
Related articles
Canadian Dollar middles as investor sentiment slows to a crawl
2025.10.01 04:09Fed's Collins warns that rate cuts will follow, but only if the economy meets expectations
2025.10.01 03:59Fed's Goolsbee says short government shutdowns are okay
2025.10.01 03:48USD/JPY slides as US shutdown fears boost Yen's safe-haven appeal
2025.10.01 03:36Dow Jones Industrial Average slow bleeds as government shutdown looms
2025.10.01 02:46FX Today: Focus shifts to inflation in Europe and US ADP, ISM data
2025.10.01 02:46
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
Gold advances as shutdown looms, weak US data fuels rate cut bets
Gold climbs during the North American session on Tuesday yet remains below the record high hit in the Asian session of $3,871. Amid fears of a US government shutdown, jobs data reaffirmed expectations of rate cuts by the Federal Reserve (Fed). XAU/USD trades at $3,846, up 0.35%.
New
2025.10.01 04:29Canadian Dollar middles as investor sentiment slows to a crawl
The Canadian Dollar (CAD) held mostly in place on Tuesday, with market flows broadly drawing down as the US government careens into a funding shutdown.
New
2025.10.01 04:09Fed's Collins warns that rate cuts will follow, but only if the economy meets expectations
Federal Reserve (Fed) Bank of Boston President Susan Collins warned that the Fed could have room to continue interest rate cuts, but only if economic conditions remain on-balance.
New
2025.10.01 03:59Fed's Goolsbee says short government shutdowns are okay
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Tuesday that "short" government shutdowns tend to have a limited impact on the broader economy. The statements come at a time when the US government is barreling into a funding gap and subsequent shutdown.
New
2025.10.01 03:48USD/JPY slides as US shutdown fears boost Yen's safe-haven appeal
The Japanese Yen (JPY) gains traction against the US Dollar (USD) on Tuesday, with USD/JPY extending losses for a third straight day as the looming United States (US) government shutdown weighs on the Greenback and bolsters safe-haven demand for the Yen.
New
2025.10.01 03:36Dow Jones Industrial Average slow bleeds as government shutdown looms
The Dow Jones Industrial Average (DJIA) saw a slow bleed on Tuesday, shedding around 150 points as investors braced ahead of what is likely to be a federal government shutdown.
New
2025.10.01 02:46FX Today: Focus shifts to inflation in Europe and US ADP, ISM data
Steady jitters around a potential US government shutdown kept the US Dollar under pressure on Tuesday, adding to the ongoing multi-day weakness hurting the currency. In addition, prospects for extra rate cuts by the Federal Reserve also collaborated with the bearish price action.
New
2025.10.01 02:46BoE's Breeden says recent inflation "hump" shouldn't lead to more inflation
Bank of England (BoE) Monetary Policy Committee (MPC) member and Deputy Governor for Financial Stability, Sarah Breeden, stated on Tuesday that she believes the recent "bump" in inflation won't lead to further, long-term inflationary pressures.
New
2025.10.01 01:42EUR/GBP edges lower as UK GDP beats forecasts, Eurozone inflation in focus
The Euro (EUR) trades on the back foot against the British Pound (GBP) on Tuesday, with EUR/GBP hovering near the lower end of its week-long range, between 0.8720 and 0.8750. At the time of writing, the cross is trading around 0.8730, as Sterling draws support from steady UK growth data.
New
2025.10.01 01:13GBP/USD extends winning streak as US shutdown fears hit Dollar
Cable extended its gains for three straight days on Tuesday, edges up 0.20% spurred by investors selling off the Dollar amid fears of a US government shutdown. The GBP/USD trades at 1.3461 at the time of writing.
New
2025.10.01 00:22Disclaimer:
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
