The US Dollar edged lower against the Swiss Franc on Tuesday but retains most of the recent gains. The pair is trading around 0.8065 at the time of writing, with downside moves contained above 0.8050. Market attention remains on the upcoming Federal Reserve (Fed) and Swiss National Bank (SNB) monetary policy decisions later this week.
A 25-basis-point rate cut by the Fed on Wednesday is largely priced in. The US Dollar finds support from expectations that Chairman Jerome Powell will maintain a hawkish tone, tempering hopes of further easing in the near term.
US President Donald Trump added pressure on the Fed in a Politico interview earlier on Tuesday, stating that the next Fed Chair should support interest rate cuts. The remarks had a limited impact on the Dollar.
Later on Tuesday, the ADP will release its weekly Employment Change report, followed by the delayed JOLTS Job Openings data for September and October. Markets anticipate 7.2 million openings in both months, slightly below August’s 7.22 million.
On Thursday, the SNB is expected to keep its benchmark interest rate unchanged at 0%, as inflation remains near zero. During the press conference, SNB Chairman Martin Schlegel is likely to downplay the risk of negative interest rates, though any signal to the contrary could prompt a sharp move in the Swiss Franc against its main peers.
