The USD/CHF pair saw a decline in value on Monday as risk appetite improved. The US Dollar weakened, leading to a drop in the USD/CHF exchange rate to around 0.9120 during the European trading session.
The Federal Reserve is expected to keep its interest rate range of 5.25%–5.5% unchanged at its June meeting. This decision may be influenced by concerns about rising inflation, as indicated by the recent increase in the US Core Personal Consumption Expenditures (PCE) Price Index for March.
Meanwhile, the Swiss National Bank (SNB) Chairman Thomas Jordan stated that the central bank is prepared to lower interest rates again if necessary. The SNB had previously surprised markets by reducing its main policy rate in March.
Chairman Jordan highlighted the SNB’s focus on monitoring inflation closely and maintaining price stability. He warned against broadening the SNB’s mandate, emphasizing the importance of staying vigilant against unexpected shocks.
Investors will be keeping a close eye on the upcoming Consumer Price Index (CPI) data from the Swiss Federal Statistical Office, which provides insight into inflation and purchasing trends in Switzerland.