USD/CHF holds steady below 0.8000; eyes SNB Chairman Schlegel's speech, US inflation data
- USD/CHF lacks any firm intraday direction as traders seem reluctant ahead of US inflation data.
- Fed rate cut bets cap the overnight USD recovery and act as a headwind for the currency pair.
- Reviving safe-haven demand benefits the CHF and also contributes to keeping a lid on spot prices.
The USD/CHF pair struggles to capitalize on the previous day's goodish recovery move from the 0.7915 area, or the lowest level since July 23, and seesaws between tepid gains/minor losses during the Asian session on Wednesday. Spot prices remain below the 0.8000 psychological mark as traders now look forward to the crucial US inflation figures for some meaningful impetus.
The US Producer Price Index (PPI) is scheduled for release later during the North American session this Wednesday and will be followed by the US Consumer Price Index (CPI) on Thursday. Given that a 25-basis-point (bps) rate cut by the Federal Reserve (Fed) at next week's policy meeting is already priced in, the data will influence market expectations about the possibility of a jumbo interest rate cut. This, in turn, will play a key role on influencing the near-term US Dollar (USD) price dynamics and determining the next leg of a directional move for the USD/CHF pair.
In the meantime, the upbeat market mood is offset by rising geopolitical tensions and trade uncertainties. In fact, Israel carried out an air strike targeting Hamas leadership in Qatar's capital, Doha. Moreover, Poland placed its air defenses on high alert in response to Russia's heaviest air assaults on Ukraine in recent weeks. Meanwhile, US President Donald Trump has urged the European Union (EU) to impose 100% tariffs on Chinese and Indian goods to pressure Russian President Vladimir Putin, offering support to the safe-haven Swiss Franc (CHF) and capping the USD/CHF pair.
Traders on Wednesday will further take cues from Swiss National Bank (SNB) Governing Board Chairman Martin Schlegel's speech to grab short-term opportunities. Nevertheless, the aforementioned fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that spot prices have formed a near-term bottom and positioning for any meaningful appreciating move.
Economic Indicator
SNB Chairman Schlegel speech
Martin Schlegel became the Swiss National Bank (SNB) Chairman in October 2024. Schlegel was previously the Vice Chairman of the Governing Board of the SNB and he worked at various positions in the Swiss central bank. As head of the SNB. Schlegel remarks can significantly alter the value of the nation's currency, the Swiss Franc (CHF)
Related Articles
Oracle Q1 FY2026 Earnings: Cloud Surge and Record RPO Fuel AI Optimism
TradingKey - Oracle Corporation (NYSE: ORCL) posted mixed Q1 FY2026 results, with total revenue and adjusted EPS slightly below consensus amid a shift to cloud services, but cloud revenue beat expectations with robust 28% growth. A massive RPO backlog of $455 billion, up 359% YoY
Will iPhone 17 Spark a New Upgrade Cycle? The Baseline iPhone Excites, But the Air Could Flop
TradingKey - After Apple’s 2025 fall launch event, Apple’s stock (AAPL) turned from gains to losses, as investors once again expressed dissatisfaction with what they saw as a lack of major innovation from the world’s top tech innovator. Analysts’ reviews suggest that the upgraded base iPhone 17
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Unlocking Gold’s Next Leg: $4,000 in Reach by 2025？
TradingKey - Gold has kicked off a fresh uptrend in early September, breaking out of months of compression and reclaiming key territory. The decisive move above $3,500 establishes a new support base and puts higher objectives back on the table for the weeks ahead
2025 Hottest US IPO Week: Klarna, Gemini, Figure Set for “Triple Launch”
TradingKey - 5 companies are now pricing their U.S. initial public offerings (IPOs) for the week starting September 8, with a total expected fundraising exceeding $3 billion, making it the busiest IPO week of 2025. Investors are closely watching the debut performance of Klarna, Gemini, and Figure.
