USD/CHF trades in a tight range below 0.8850 as investors seek fresh Fed interest rate cues.
Donald Trump’s economic agenda will be inflationary for the US economy.
Investors await flash US S&P Global PMI for November and SNB Schlegel’s speech, which are scheduled for Friday.
The USD/CHF pair consolidates in a tight range below 0.8850 in European trading hours on Thursday. The Swiss Franc pair trades sideways as investors look for fresh cues about whether the Federal Reserve (Fed) will cut interest rates again in the monetary policy meeting in December. Meanwhile, the US Dollar (USD) holds its Wednesday’s recovery and aims to break above the fresh yearly high.

Traders doubt Fed rate cuts next month as market experts believe that price

USD/CHF marches toward 0.8700 as safe-haven flows to the Swiss Franc have diminished.
Investors divide over the size of Fed’s interest-rate cuts in September.
Investors await the US PPI and CPI data for July, which will be published at 12:30 GMT and Wednesday, respectively.
The USD/CHF pair gains to near 0.8675 in Tuesday’s European session. The Swiss Franc asset strengthens as the appeal of the Swiss Franc as a safe-haven asset diminishes due to waning risks of the United States (US) entering a recession.

Fears of a potential US recession faded after upbeat weekly Initial Jobless Claims. Also, the think tank discussed that the Nonfarm Payrolls (NFP) data for July was not as bad as exhibited by sheer sell-off in global equities.

Currently,

The Pound Sterling falls against the US Dollar below 1.2700 amid weak appeal for risk-sensitive currencies.
Investors worry that the US economy could enter a recession.
The British currency will be guided by market speculation for BoE rate cuts.
The Pound Sterling (GBP) extends its downside below 1.2700 against the US Dollar (USD) in Tuesday’s New York session. The GBP/USD pair weakens as the US Dollar steadies after rebounding from fresh six-month low. The US Dollar Index (DXY), which tracks the greenback’s value against six major currencies, recovers to near 103.00.

The outlook for the US Dollar remains vulnerable as market participants worry about growing speculation of a recession in the United States (US) and an announcement of

The Pound Sterling faces pressure as geopolitical tensions improve the appeal for safe-haven assets.
UK’s employment and inflation data will influence speculation over BoE rate cuts.
The UK economy is on track to come out of a technical recession.
The Pound Sterling (GBP) remains on the backfoot against the US Dollar in Monday’s early New York session. The near-term demand of the GBP/USD pair remains downbeat due to deepening Middle East tensions and speculation that the Bank of England (BoE) will start reducing interest rates sooner than the Federal Reserve (Fed).

Currently, financial markets anticipate that the BoE will begin lowering borrowing costs from August while the Fed is expected to follow the same from the September meeting.

USD/CHF trades sideways near 0.8800 as the focus shifts to US economic data.
The Swiss economy is expected to have growth at a moderate pace of 0.1% in the last quarter of 2023.
Fed policymakers support holding interest rates unchanged in the range of 5.25%-5.50%.
The USD/CHF is stuck in a tight range near the round-level resistance of 0.8800 since Friday’s trading session. The Swiss Franc asset struggles to find a direction as investors await the United States core Personal Consumption Expenditure price index (PCE) and Swiss Q4 Gross Domestic Product (GDP) data for further guidance.
The US Dollar edges down in Tuesday’s trading session. Further action in the US Dollar will be guided by the US core PCE price index data, which will influence market expectations

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Pound Sterling struggles for a direction as investors shift focus to the Q3 GDP data.
A poor GDP report would elevate dovish expectations from various BoE policymakers.
Rising energy prices have squeezed the UK’s consumer spending.
The Pound Sterling (GBP) is stuck in a tight range as investors seem unwilling to build fresh positions ahead of the release of the UK Q3 Gross Domestic Product (GDP) data, published on Friday at 07:00 GMT. The GBP/USD pair remains on tenterhooks as the Q3 GDP report will shape December’s monetary policy outlook of the Bank of England (BoE).

A decline in consumer spending, poor Services PMI, postponed demand for