{"id":15484,"date":"2024-10-24T07:59:34","date_gmt":"2024-10-24T07:59:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15484"},"modified":"2024-10-24T07:59:34","modified_gmt":"2024-10-24T07:59:34","slug":"usd-chf-holds-firm-as-snb-rate-cut-looms","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/usd-chf-holds-firm-as-snb-rate-cut-looms\/","title":{"rendered":"USD\/CHF Holds Firm as SNB Rate Cut Looms"},"content":{"rendered":"\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD\/CHF trades around 0.8660, just below Wednesday\u2019s high of 0.8686.<\/li>\n\n\n\n<li>Rising expectations of a Swiss rate cut and safe-haven demand support the Swiss Franc.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The USD\/CHF pair is holding near a two-month high at 0.8660, with a recent peak of 0.8686 recorded during the mid-week session.<\/p>\n\n\n\n<p>This upward momentum is partly driven by traders positioning for a potential rate cut from the Swiss National Bank (SNB) in December.<\/p>\n\n\n\n<p>With inflationary pressures relatively low and economic activity showing signs of slowing, the SNB is widely expected to ease monetary policy further.<\/p>\n\n\n\n<p>According to market consensus, this could push USD\/CHF even higher, as <strong><a href=\"https:\/\/t.co\/f7a0pqbCpc\">rate differentials<\/a><\/strong> between the US and Switzerland widen further.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-49-1024x438.jpeg\" alt=\"\" class=\"wp-image-15485\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: USD\/CHF attempts recovery, but resistance at <strong>0.8686<\/strong> remains pivotal for further gains, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>In this <strong>USD\/CHF<\/strong> chart, the price closed at <strong>0.86630<\/strong>, marking a slight recovery after touching an intraday low of <strong>0.86533<\/strong>.<\/p>\n\n\n\n<p>The market trend shows some consolidation after a downtrend, with the 15-minute moving averages (MA 5, 10, and 30) showing some tightening around current price levels.<\/p>\n\n\n\n<p>The MACD histogram reveals a crossover that might suggest bullish momentum picking up, although the market is still hovering near short-term resistance at <strong>0.8686<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Safe-Haven Flows Support the Franc Amid Middle East Tensions<\/strong><\/h2>\n\n\n\n<p>However, the Swiss Franc (CHF) is also experiencing some support from its traditional role as a safe-haven currency amid escalating tensions in the Middle East.<\/p>\n\n\n\n<p>On Wednesday, <strong><a href=\"https:\/\/www.reuters.com\/world\/middle-east\/israel-intensifies-offensive-gaza-lebanon-after-hamas-leaders-death-2024-10-20\/\">Israeli airstrikes targeted southern Beirut<\/a><\/strong>, and the US continued diplomatic efforts in the region.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Israeli strike on Beirut suburbs destroys office used by Al-Mayadeen broadcaster -security source <a href=\"https:\/\/t.co\/G3acSsWcYx\">https:\/\/t.co\/G3acSsWcYx<\/a> <a href=\"https:\/\/t.co\/xOFHGdITWJ\">pic.twitter.com\/xOFHGdITWJ<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1849219275627643202?ref_src=twsrc%5Etfw\">October 23, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>As the situation intensifies, with Hezbollah deploying &#8220;precision missiles&#8221; and new drone technology, safe-haven flows into the CHF could temporarily limit any downside for the currency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>US Dollar Holds Steady Despite Treasury Yield Dip<\/strong><\/h2>\n\n\n\n<p>The US Dollar, meanwhile, has faced mild pressure as US Treasury yields dipped slightly. Despite this, the downside for the Greenback remains limited.<\/p>\n\n\n\n<p>The latest inflation data in the US has kept concerns alive that the Federal Reserve may not take aggressive steps to cut interest rates in November.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/dollar-climbs-with-u-s-yields-bitcoin-surges\/\">Dollar Climbs with U.S. Yields; Bitcoin Surges<\/a><\/strong><\/p>\n\n\n\n<p>The CME FedWatch Tool places the probability of a <strong><a href=\"https:\/\/t.co\/ADKXcXxaYr\">25-basis-point rate<\/a><\/strong> cut at 88.9%, with no expectation for a larger 50-basis-point cut, suggesting the Fed\u2019s cautious approach could support the dollar\u2019s strength in the near term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Traders Await US PMI Data for Further Direction<\/strong><\/h2>\n\n\n\n<p>Traders will now turn their attention to the S&amp;P Global Purchasing Managers Index (PMI), a key measure of US business activity in both manufacturing and services.<\/p>\n\n\n\n<p>The PMI data, expected later today, could provide insight into whether economic activity is strong enough to warrant any shift in the Fed&#8217;s policy outlook.<\/p>\n\n\n\n<p>If the PMI numbers show a slowing economy, it may pressure the dollar further, but <strong><a href=\"https:\/\/t.co\/B3trFAQAIi\">stronger readings<\/a><\/strong> could reinforce the view that the Fed will hold off on deeper rate cuts.<\/p>\n\n\n\n<p>While USD\/CHF could continue to trade higher, the pair\u2019s movement may be capped by safe-haven demand for the Swiss Franc and any signs of slowing US economic activity.<\/p>\n\n\n\n<p>Traders should keep a close watch on both geopolitical developments and economic data releases for further direction.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>USD\/CHF stays near two-month highs amid Swiss National Bank rate cut expectations and rising Middle Eastern tensions. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,12,57],"class_list":["post-15484","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-forex","tag-franc"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15484"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15484\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}