Anna 
During the early European session on Thursday, the USD/CHF pair traded stronger around 0.9085, benefitting from a modest rebound in the US Dollar (USD) fueled by hawkish remarks from Federal Reserve (Fed) officials. The currency pair found support amidst anticipation of Fed official Mary Daly’s upcoming speech, with no major economic data releases scheduled from the US or Switzerland.
Several Fed policymakers, including Boston Fed President Susan Collins, emphasized a hawkish stance this week, lending strength to the USD. Collins indicated on Wednesday that it would take longer than expected to bring inflation down to the Fed’s 2% target and suggested that higher inflation levels could persist for an extended period. Similarly, New York Fed President John Williams and Minneapolis Fed President Neel Kashkari expressed preferences for maintaining interest rates at current levels for an extended duration.
Earlier in the week, Fed’s Williams emphasized that monetary policy is appropriately positioned but indicated a need for additional data collection before making significant adjustments. Meanwhile, Fed’s Kashkari suggested that rates might need to remain unchanged for an extended period and did not rule out a rate hike if inflation hovers around 3%. These hawkish sentiments contributed to broader USD strength, thereby supporting the USD/CHF pair.
On the Swiss front, recent data from the State Secretariat for Economic Affairs revealed a decrease in Switzerland’s unemployment rate to 2.3% month-on-month in April, marking the lowest level in four months.
In addition to economic indicators, market participants are closely monitoring geopolitical developments in the Middle East. The United States is actively engaged in brokering discussions for a ceasefire in Gaza, aiming to bridge the gap between Israel and Hamas. Central Intelligence Agency Director William Burns visited Israel on Wednesday and held talks with Israeli Prime Minister Benjamin Netanyahu, according to Reuters. Heightened geopolitical uncertainties could potentially boost the Swiss Franc (CHF), traditionally considered a safe-haven currency, amid ongoing tensions.
