USD/CHF Holds Steady; Fed Signals in Focus

The USD/CHF pair held steady around 0.8280 during Thursday’s trading session (October 29) after the US dollar pared some of its earlier gains following the Federal Reserve's decision to keep interest rates unchanged. The US central bank maintained rates in the 3.75%–4% range, in line with market expectations.

The Fed opted to await further data before determining the next direction for its policy, while acknowledging that inflationary pressures remain elevated. The decision was not unanimous, as Lisa Cook and Beth Hammack favored a 25-basis-point rate hike.

Fed Chair Kevin Warsh reaffirmed the central bank's commitment to maintaining price stability and returning inflation to its 2% target. The Fed also noted that economic activity continues to expand, supported by domestic spending, investment, and strong productivity growth.

In Switzerland, economic sentiment has weakened. The ZEW expectations index fell sharply to -15.3 in October, down from 2.6 in September. This decline marks one of the largest monthly drops in sentiment since March 2026, putting pressure on the Swiss franc.

From a technical perspective, UOB observes that upward momentum for USD/CHF is beginning to build. A close above 0.8290 could open the door toward 0.8320, while the 0.8250 level now serves as a key support. However, UOB suggests that the potential for a sustained rally remains relatively weak. (srh)

Source: Newsmaker.id