Usdchf Bullish Rally Continues

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Usdchf Bullish Rally Continues

Usd/Chf Crosses 0.8800 As Bullish Rally Continues

USD/CHF is in green for the 4th session in a row and is seen near 0.8830. It seems that the Trump trade has also found its way into the USD/CHF, with the CHF going through a bearish phase.

Trump's win has proven to be a breath of fresh air for the greenback and the US bond yields. This comes as the market is now forecasting a less dovish Fed as Trump policies are expected to raise the inflation levels.

Fed To Cut Rates In December 2024

As of now, there is only a 62.4% chance that the December meeting will result in a rate cut (0.25%). Just a week ago, the odds were at 75%, which shows a big change.

The recently released CPI (US) showed an increase in the annual rate of inflation, which was in line with the forecast. So, as far as a surprise is concerned, there's nothing special to see here.

But, the CPI report does point towards an increase in inflation as it is slowly moving away from the 2.0% target. In fact, even the core CPI has gone up, which could be a concern for the US Federal Reserve.

The odds of a December rate cut are still high, but the inflation report will surely force the Fed to rethink its policy. Meanwhile, the movement of funds into the safe-haven assets will provide a boost to the CHF.

If that happens, the upside in the USD/CHF will become capped and even lead to a downside. Right now, the US Dollar is under the influence of Trump trades but that could fade out any moment now.

The US is now facing a new reality in the economic terms... Trump policies are at a 180 degree from the earlier president. From tariffs to lower taxes to government spending, he has a lot of things planned.

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