USD/CHF falls 0.18% to 0.8078 after weaker US economic data reduces expectations for further Federal Reserve tightening.
The Swiss Franc strengthened against the US Dollar on Wednesday, with USD/CHF dropping 0.18% to 0.8078. The move followed softer-than-expected US economic data, which weighed on the Greenback and dampened bets for additional Federal Reserve interest rate hikes.
Prior to the release, markets had priced in a higher probability of further Fed tightening, but the disappointing data shifted sentiment. The pair had traded near 0.8100 earlier in the session before retreating.
Traders also monitored developments in the Strait of Hormuz, though the immediate market reaction centered on the US economic indicators and their implications for monetary policy.