EUR/CHF climbs to two-week high as risk-on sentiment weighs on Swiss Franc

• EUR/CHF advances to a two-week high as the Swiss Franc weakens against major peers.
• Global risk appetite improves on optimism ahead of Thursday's Trump-Xi meeting at the APEC summit.
• Traders eye the ECB policy decision on Thursday, with the central bank expected to hold rates at 2.00%

The Euro (EUR) edges higher against the Swiss Franc (CHF) on Wednesday, with EUR/CHF advancing to a two-week high as the Franc weakens against most major peers amid improved risk appetite and fading safe-haven demand. At the time of writing, the cross is trading around 0.9274, up roughly 0.30% on the day after rebounding from an intraday low near 0.9238.

The risk-on tone dominating global markets is largely driven by renewed optimism over US-China trade talks, with US President Donald Trump and Chinese President Xi Jinping set to meet on Thursday at the sidelines of the APEC summit in South Korea. Hopes for a potential trade agreement have lifted investor sentiment, sending global equities higher and weighing on traditional havens like the Swiss Franc.

Earlier in the day, the Swiss ZEW Expectations Index showed a sharp rebound in investor sentiment, rising to -7.7 in October from -46.4 previously. The improvement indicates easing pessimism about the six-month economic outlook, though overall sentiment remains slightly negative. The release offered little immediate support to the Franc, as traders focused on the broader risk-on narrative and awaited the Federal Reserve's (Fed) interest rate decision later in the day.

In the Eurozone, traders now turn their attention to Thursday's European Central Bank (ECB) policy decision. The central bank is widely expected to hold its benchmark rate at 2.00% for a third consecutive meeting, as steady inflation near the 2% target and signs of improving business activity allow policymakers to maintain a cautious stance. The ECB's wait-and-see approach could underpin the Euro in the near term.