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USD/CHF holds below 0.9050 amid year-end holiday season
Tuesday, 31 December 2024 02:07 WIB | USD/CHF |

The USD/CHF pair trades with mild losses around 0.9020 amid the cautious mood during the early European trading hours on Monday. The trading volumes will be light in another holiday-shortened week as traders await the New Year holiday. On Friday, the US ISM Manufacturing Manufacturing Purchasing Managers Index (PMI) for December will be in the spotlight.

The elevated inflation in the US and the concern that President-elect Donald Trump's policies could fuel inflation, the US Federal Reserve (Fed) signaled that it's likely to cut rates more gradually in 2025 than it had projected in September. Fed officials see two rate cuts next year, down from four reductions they predicted three months ago. The growing expectations of fewer rate cuts next year by the US Federal Reserve (Fed) in 2025 could underpin the US Dollar (USD) against the Swiss Franc (CHF).

On the other hand, the uncertainty about the economic outlook and geopolitical tensions in the Middle East could boost the safe-haven flows, benefiting the CHF. The Israeli military announced on Saturday a fresh operation in the Beit Hanoun area. According to Reuters, rocket shooting into Israel resumed on Sunday despite the heavy operation.(Cay) Newsmaker23

Source: Fxstreet

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