Usdchf Capped Ahead Of Fed

Usdchf Capped Ahead Of Fed by Ashly Chole last updated on April 25, 2025

Usd/Chf Capped Below 0.8500 Ahead Of Fed Policy Change

policy change from the US Federal Reserve is now confirmed as the central bank is gearing itself for the first rate cut in a few weeks.

This has led to weakness in the US Dollar across the board and thus has capped the upside in USD/CHF. Right now, USD/CHF is below the 0.8500 resistance on Monday with a bearish bias.

S&Amp;Amp;P 500 Opens Higher On Monday

However, let's not forget that the rate cuts by the Federal Reserve are now fully priced. That's one reason why we are not seeing any big selling in the USD/CHF.

While the US Dollar is under pressure, the US stock markets, such as the S&P 500, are rejoicing in the upcoming rate cuts. That's why the S&P 500 index opened Monday's session in green while the DXY is trading near 100.53.

According to experts, Powell's comments have confirmed that they are ready to normalize the policy. The Fed chief added that the time is now right to cut the rates as that's the only way to protect the labor market from downside risks.

Now that the data has proved it numerous times that inflation is on track to touch 2%, there's no reason to delay the rate cuts any further.

Amidst all of this, the US Durable Goods Orders were released, which showed a strong reading. However, even that failed to produce a reaction in the US Dollar, which remains subdued.

On the other side, Switzerland's Q2 employment data was released, which showed an increase from 5.481 million to 5.499 million.

The data shows that the labor market has expanded, but it will not have much impact on the market's expectations of the SNB rate cut in September.

Overall, the USD/CHF pair is more likely to turn lower than it is to turn higher as the US dollar is weaker across the board.