Select Language

USD/CHF ticks down to near 0.7950 despite recovery in US Dollar

Breaking news

USD/CHF ticks down to near 0.7950 despite recovery in US Dollar

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.06 14:58
USD/CHF ticks down to near 0.7950 despite recovery in US Dollar

update 2025.10.06 14:58

  • USD/CHF trades subduedly around 0.7950 despite a decent recovery move in the US Dollar.
  • The US Dollar gains ahead of the US Senate's fifth time voting on the stopgap bill.
  • SNB's Schlegel is confident that inflation will accelerate in the coming quarters.

The USD/CHF pair edges down to near 0.7955 during the late Asian trading session on Monday. The Swiss Franc pair faces slight selling pressure even as the US Dollar (USD) recovers firmly, suggesting significant strength in the Swiss Franc (CHF).

The Swiss currency attracts bids as Swiss National Bank (SNB) Chairman Martin Schlegel has expressed confidence that inflationary pressures could accelerate in the coming quarters. "Inflation is expected to rise slightly in the coming quarters," Schlegel said last week, but cited that US pharma tariffs have raised "downside" risks a bit.

The scenario of rising inflation expectations diminishes fears of the SNB pushing interest rates into a negative territory. SNB's Schlegel has already warned that negative borrowing rates could be unfavorable for pensioners and financial institutions.

At the start of the week, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, jumps 0.3% to near 98.00 during late Asian trading hours.

The US Dollar gains even as Washington faces the risk of mass lay-offs in the wake of a partial government shutdown. The US Senate is scheduled to meet on Monday to vote on passing the short-term funding bill. This will be the fifth time that Senators vote on the stopgap bill, which has already been passed by the House of Representatives.

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.


Date

Created

 : 2025.10.06

Update

Last updated

 : 2025.10.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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

FX option expiries for Oct 28 NY cut

FX option expiries for Oct 28 NY cut at 10:00 Eastern Time via DTCC can be found below.
New
update2025.10.28 15:23

AUD/JPY Price Forecast: Crucial upside barrier emerges near 100.00

The AUD/JPY cross slumps to around 99.55 during the early European session on Tuesday.
New
update2025.10.28 15:06

US Dollar Index Price Forecast: Tests lower ascending channel boundary around 98.50

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its losses for the second consecutive day and trading around 98.60 during the Asian hours on Tuesday.
New
update2025.10.28 14:30

GBP/JPY slides below 203.00 as JPY gains strong traction on intervention speculation

The GBP/JPY cross attracts some selling during the Asian session on Tuesday and for now, seems to have snapped a three-day winning streak to the 204.25 region, or a nearly three-week high touched the previous day.
New
update2025.10.28 14:27

GBP/USD gathers strength above 1.3350 on Fed rate cut hopes

The GBP/USD pair gains ground to near 1.3365 during the early European session on Tuesday. The US Dollar (USD) weakens against the Pound Sterling (GBP) amid the expectation that the Federal Reserve (Fed) will cut interest rates in the monetary policy announcement on Wednesday.
New
update2025.10.28 14:16

EUR/USD extends winning streak as US Dollar falls further ahead of Fed's monetary policy

The EUR/USD extends its winning streak for the fifth trading day on Tuesday. The major currency pair posts a fresh weekly high near 1.1670 as the US Dollar (USD) underperforms its peers ahead of the monetary policy announcement by the Federal Reserve (Fed) on Wednesday.
New
update2025.10.28 14:11

USD/INR rises further Indian Rupee weakens on rising oil price

The Indian Rupee (INR) extends its downside against the US Dollar (USD) at open on Tuesday. The USD/INR jumps to near 88.60 as the Indian Rupee underperforms due to a recovery move in the Oil price seen in the past week.
New
update2025.10.28 13:42

USD/CHF holds losses below 0.7950 due to diminished odds of SNB's policy easing

USD/CHF loses ground for the fourth successive session, trading around 0.7940 during the Asian hours on Tuesday. The pair faces challenges as the Swiss Franc (CHF) strengthened on decreasing expectations of further policy easing by the Swiss National Bank (SNB).
New
update2025.10.28 13:40

India Gold price today: Gold falls, according to FXStreet data

Gold prices fell in India on Tuesday, according to data compiled by FXStreet.
New
update2025.10.28 13:35

NZD/USD climbs to three-week high, eyes 0.5800 amid trade optimism and softer USD

The NZD/USD pair prolongs its recent recovery move from the 0.5685-0.5680 region, or the lowest level since April, touched last week, and climbs to a nearly three-week high during the Asian session on Tuesday.
New
update2025.10.28 13:26

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel