USD/CHF is trading around 0.9130 on Friday, supported by a modest rebound in the US Dollar. Traders are waiting on the sidelines ahead of the Swiss National Bank Chairman Jordan’s speech and the final reading of the US March Personal Consumption Expenditures Price Index.
The US economy grew at a slower pace than expected in the first quarter of 2024, with a 1.6% annualized growth rate, missing the consensus of 2.5%. However, the quarterly Personal Consumption Expenditure inflation measure rose to 3.4%, indicating that the Federal Reserve may not cut interest rates before September. This has led investors to forecast only one rate cut this year, down from previous expectations of three cuts.
On the Swiss front, the ZEW Survey Expectations rose to 17.6 in April, indicating positive sentiment. Geopolitical tensions in the Middle East, particularly between Israel and Iran, may lead to increased safe-haven flows, benefiting the Swiss Franc.