Ella 
USD/CHF held steady around 0.8940 during Wednesday’s Asian session. USD/CHF may find support from a slight rebound in the U.S. dollar, which may be affected by rising Treasury yields.
Dr. Coogler, a member of the Federal Reserve Board of Governors, recently pointed out that although inflationary pressures have declined, the Fed needs more data to justify cutting interest rates. Dr Kugler suggested that if incoming data failed to show progress towards the 2 per cent inflation target, it might be appropriate to maintain current rates for longer.
On Wednesday, market focus will turn to key U.S. economic data and the Federal Reserve’s Beige Book, as well as speeches by Fed officials Thomas Barkin and Christopher Waller. In Switzerland, focus will turn to trade balance data released on Thursday.
In Switzerland, the 10-year bond yield fell further to around 0.54%, close to its lowest level since August 2022, maintaining a similar trend to U.S. Treasury yields. Federal Reserve Chairman Jerome Powell’s speech heightened market expectations for a rate cut by the Federal Reserve in September.
Federal Reserve Chairman Jerome Powell said on Monday that recent U.S. inflation data “increased people’s confidence to a certain extent” that inflation is continuing to move towards the Fed’s target, which means that the Fed may soon take measures to cut interest rates. .
The Swiss National Bank (SNB) cut its key interest rate by 25 basis points for the second consecutive time at its June meeting. The decision was taken as inflationary pressures were subdued and the Swiss franc remained resilient.
