The USD/CHF pair remained firm near 0.7970 during the Asian trading session on Wednesday, consolidating around Tuesday’s high. The pair’s resilience reflects a broadly steady US Dollar (USD), supported by optimism that the United States and China could reach a trade agreement soon.
At the time of writing, the US Dollar Index (DXY)—which tracks the greenback’s performance against a basket of six major currencies—was holding near 98.90, suggesting underlying stability in the USD ahead of key economic data releases.
Hopes for progress in US-China trade negotiations were rekindled earlier this week after President Donald Trump expressed confidence in achieving a “fair deal” during his upcoming meeting with Chinese President Xi Jinping in South Korea. However, Trump later tempered expectations on Tuesday, admitting that the meeting “might not take place,” injecting a note of caution into market sentiment.
On the domestic front, investors are closely watching the delayed US Consumer Price Index (CPI) report for September, now scheduled for release on Saturday due to the ongoing US government shutdown.
Market consensus points to a rise in headline inflation to 3.1% year-on-year, up from 2.9% in August, while core inflation is expected to remain steady at 3.1%. A stronger-than-expected reading could reinforce the USD’s strength and shape expectations for future Federal Reserve (Fed) policy moves.
Meanwhile, the Swiss Franc (CHF) has shown a mixed performance, as traders weigh prospects of further monetary easing by the Swiss National Bank (SNB). With Swiss inflation data continuing to disappoint—September CPI declined by 0.2%, following a 0.1% drop in August—speculation persists that the SNB may consider deeper negative interest rates to counter deflationary pressures.
Overall, USD/CHF remains supported in the near term, but volatility could increase as traders await fresh direction from the US CPI release and developments in US-China trade talks.
