The USD/CHF pair is facing challenges as expectations for rate cuts by the Fed in 2024 have been renewed. The US Dollar’s weakness is putting pressure on the pair, with the possibility of interest rate cuts by the Federal Reserve later this year. This sentiment stems from the disappointing US jobs data released recently.
In April, the US economy added 175,000 new jobs, falling short of expectations and showing a slowdown from the previous month. Average Hourly Earnings also came in slightly below forecasts. As a result, the Fed is now expected to make its first rate cut in September, earlier than previously anticipated.
On the Swiss side, inflation in Switzerland accelerated more than expected in April, reaching 1.4% year-on-year. This unexpected rise has supported the Swiss Franc. Traders are now keeping an eye on a speech by SNB Chairman Thomas Jordan at the BIS Innovation Summit 2024, where he may provide insights into the economy and policy direction.