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Source: Newsmaker.id
The Swiss franc held steady against the US dollar during Asian trading on Thursday (August 27). The USD/CHF pair remained around 0.8050, following an earlier gain of approximately 0.5%.
The US dollar continues to draw support from robust economic data. The US PCE price index rose 0.2% month-on-month in July—surpassing the 0.1% forecast—while the annual rate climbed to 3.7%.
This inflation data reinforces expectations that the Federal Reserve may still raise interest rates once more before the year ends. Investors are now awaiting further signals from Fed officials at the Jackson Hole symposium.
On the geopolitical front, oil prices have continued to soften following diplomatic progress in the Middle East. Iran and Oman reportedly reached an agreement regarding territorial waters and revenue sharing near the Strait of Hormuz, easing concerns over energy-driven inflation.
However, the market is also closely monitoring the US Treasury Department's plan to double its bond buybacks. This policy has drawn criticism from investor Stanley Druckenmiller, who argues it could undermine market credibility without fundamentally addressing the US debt issue.
Newsmaker Analysis: USD/CHF remains stable as the US dollar is bolstered by hotter-than-expected PCE data, while the Swiss franc finds support in an improving domestic economic outlook. As long as the pair holds above 0.8000, the possibility of a USD/CHF rebound remains open. However, the next move hinges largely on the Jackson Hole speeches; a hawkish signal from the Fed could push USD/CHF higher, whereas a cautious tone might once again weigh on the US dollar. (asd)
Source: Newsmaker.id