The US Dollar (USD) edged higher against the Swiss Franc (CHF) on Wednesday, with USD/CHF trading near 0.7940 during the late Asian session. The modest uptick reflects firmer demand for the Greenback as investors brace for the Federal Reserve’s monetary policy announcement later today.
Fed Expected to Deliver Another 25 bps Rate Cut
At the time of writing, the US Dollar Index (DXY) is up 0.16% around 98.85, supported by expectations that the Fed will cut interest rates by 25 basis points (bps) for the second consecutive meeting, bringing the target range down to 3.75%–4.00%, according to the CME FedWatch Tool.
Market participants are betting on further policy easing amid signs of slowing U.S. inflation, a softening labor market, and the ongoing federal government shutdown.
Traders will closely watch the Fed’s forward guidance for clues about future rate decisions, with the CME data also showing expectations of another 25-bps cut in December.
Global Focus: Trump–Xi Meeting Looms
Beyond monetary policy, investors are turning their attention to the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday in South Korea. The talks are expected to cover key issues including tariffs on fentanyl-related products, rare earth exports, and TikTok regulations — all of which could have implications for global risk sentiment.
Swiss Data in Focus
In Europe, traders will also watch the release of the Swiss ZEW Survey Expectations for October, due at 09:00 GMT. The previous report showed a notable improvement in sentiment, rising from -53.8 in August to -46.4 in September, suggesting a gradual recovery in investor confidence.
