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USD/CHF Held Near 0.8050 As Traders Expected A Fed Rate Cut At Its Upcoming Meeting
Wednesday, 6 August 2025 11:50 WIB | USD/CHF |

USD/CHF weakened after two days of gains, trading around 0.8070 during the Asian session on Wednesday (August 6th). The currency pair depreciated as the US dollar (USD) weakened due to strong dovish sentiment surrounding the Federal Reserve's (Fed) policy outlook. Traders will likely be watching upcoming speeches by Fed policymakers, including Susan Collins, Lisa Cook, and Mary Daly.

The US Fed is expected to cut interest rates by 25 basis points in September, following weak labor market data that has raised concerns about the US economic outlook. The market continues to price in a above 90% probability of a Fed rate cut in September, with a total of around 60 basis points of easing expected by the end of the year.

Traders are cautious ahead of US President Donald Trump's latest trade deadline on Friday, when a new wave of high tariffs will take effect on several countries unless a last-minute deal is reached to negotiate lower tariffs. Trump has also threatened to impose tariffs of up to 250% on pharmaceutical imports and potential levies on semiconductors.

On Tuesday, Trump announced that he would name a Fed Chair and Kugler's replacement by the end of the week. He confirmed his choices for Chair, including White House economic adviser Kevin Hassett, former Fed governor Kevin Warsh, and two others. Trump also confirmed that Treasury Secretary Scott Bessent was not his choice for Fed Chair.

The downside movement in the USD/CHF pair may be restrained as the Swiss Franc (CHF) weakens due to growing concerns about the impact of US tariffs on Swiss exports. The Trump administration announced a 39% tariff on Swiss goods, an increase from the 31% tariff imposed in April, which will take effect on August 7. (alg)

Source: FXstreet

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