The USD/CHF pair flattens around 0.8820 during North American trading hours on Friday. The Swiss Franc pair trades sideways even though the US Dollar (USD) exhibits strength amid expectations that the Federal Reserve (Fed) will not cut its key borrowing rates in the near term.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, rises to near 104.00.
Fed officials have stated that they are not in a hurry to move to interest rate cuts as they struggle to interpret the outcome of United States (US) President Donald Trump's economic policies. In Friday's North American session, Chicago Fed Bank President Austan Goolsbee said in an interview with CNBC that the Fed needs to be a "steady hand" and take the "long view" on the economy. Goolsbee added that the central bank needs to know how long the "tariffs last, possible retaliation, pass through to consumers".

Separately, New York Fed Bank President John Williams said that the current modestly restrictive monetary policy is "entirely appropriate" with a "solid job market" and "above-target inflation".

Meanwhile, investors look for fresh updates on reciprocal tariffs from US President Trump, which he is expected to unveil on April 2. Investors expect that the implementation of Trump's reciprocal tariffs will be unfavorable for global economic growth.

The Swiss Franc (CHF) outperforms all peers on Friday even though the Swiss National Bank (SNB) reduced interest rates by 25 basis points (bps) to 0.25% on Thursday. SNB Chairman Martin Schlegel stated after the policy decision that the outlook for Swiss inflation is unclear due to weaker economic growth globally and a possible rise in the CHF value.

Source: Fxstreet