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USD/CHF trades on a positive note above 0.9050, focus on Fed’s Daly’s speech

  • USD/CHF drifts higher to 0.9085 in Thursday’s European session. 
  • The hawkish comments from many Fed policymakers support the US Dollar (USD). 
  • The Swiss Unemployment Rate fell to 2.3% MoM in April from 2.4% in March, the lowest level in four months. 

The USD/CHF pair trades on a stronger note around 0.9085 during the early European session on Thursday. The modest rebound of the Greenback, supported by the hawkish comments from the US Federal Reserve (Fed) officials provides some support to the pair. Investors will monitor the Fed’s Daly’s speech later on Thursday amid the lack of top-tier economic data release from the US and Switzerland. 

Several Fed policymakers delivered hawkish messages this week, bolstering the US Dollar (USD). Boston Fed President Susan Collins said on Wednesday that it will take longer than previously thought to bring inflation down to the Fed 2% target, adding that the rate will likely stay higher for longer. Meanwhile, both New York Fed President John Williams and Minneapolis Fed President Neel Kashkari noted that they prefer to hold the rate at the current levels for longer. 

The Fed’s Williams stated on Monday that monetary policy is in a good place, but they have the time to collect more data. The Fed’s Kashkari said on Tuesday that he believes rates will likely need to be held at current levels for an “extended period.” He also didn’t rule out a hike if inflation stalls near 3%. This, in turn, lifts the Greenback broadly and creates a tailwind for the USD/CHF pair. 

On the Swiss front, the nation’s Unemployment Rate fell to 2.3% MoM in April from 2.4% in March, the lowest level in four months, according to the State Secretariat for Economic Affairs on Tuesday.

Apart from this, market players will focus on the developments surrounding the geopolitical tensions in the Middle East. The US expects that discussions on a Gaza ceasefire will be able to close the gap between Israel and Hamas. The US Central Intelligence Agency Director William Burns visited Israel on Wednesday and spoke with Israeli Prime Minister Benjamin Netanyahu, per Reuters. If the uncertainties and geopolitical risks remain, this could lift the Swiss Franc (CHF), a traditional safe-haven currency. 




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