The Swiss Franc rises ahead of June Trade Balance data, while Fed rate hike bets for September weigh on the US Dollar.
USD/CHF declined for a second day, trading near 0.8070 in Asian hours as the Swiss Franc gained ahead of June Trade Balance data. The Swiss National Bank remains cautious on inflation risks, signaling potential FX intervention to curb franc appreciation and maintain price stability.
Recent SNB meeting minutes highlighted rising geopolitical tensions as a near-term inflation driver. Meanwhile, the US Dollar weakened despite escalating US-Iran hostilities, as markets price a 61.4% chance of a Fed rate hike in September, per CME FedWatch Tool.
Fed official Hammack’s hawkish remarks, scoring 7.2/10 on the FXS Speechtracker, reinforced expectations of sustained inflation pressures. The Greenback’s decline contrasts with ongoing Middle East tensions, which threaten energy supply disruptions.