USD/CHF gains ground above 0.8950 as traders brace for US PCE data
The post USD/CHF gains ground above 0.8950 as traders brace for US PCE data appeared on BitcoinEthereumNews.com.
USD/CHF trades with mild gains near 0.8980 in Friday’s early European session. The Fed’s hawkish approach and encouraging US economic data support the USD. The safe-haven flows might boost the CHF and cap the upside for the pair. The USD/CHF pair holds positive ground around 0.8980 during the early European session on Friday. A hawkish rate cut from the US Federal Reserve (Fed) and stronger US economic data boost the Greenback against the Swiss Franc (CHF). The attention will shift to the release of the US Personal Consumption Expenditures (PCE) Price Index for November, which is due later on Friday. The US central bank cut the interest rate by 25 basis points (bps) as widely expected. Nonetheless, the Fed signaled a more hawkish stance on its easing cycle next year. The Fed’s dot plot, a chart that projects the future path of interest rates, indicated a half-percentage point rate cut in 2025, compared with a full percentage cut projected in September. According to the Summary of Economic Projections (SEP), or “dot plot”,” the Fed intends to reduce the number of interest rate cuts next year from four to just two quarter-percent cuts. The upbeat US economic data released on Thursday has contributed to the USD’s upside. The third estimate reading released by the Bureau of Economic Analysis showed that the US Gross Domestic Product (GDP) grew at a 3.1% annualized rate in the third quarter (GDP), compared to a previous projection of 2.8%. Additionally, the US weekly Initial Jobless Claims declined to 220K in the week ending December 14, compared to the previous week’s print of 242K, and came in below the market consensus of 230,000. On the Swiss front, the Swiss National Bank (SNB) is expected to deliver a further interest rate cut in March 2025 to 0.25% following last week’s 50 bps…