USD/CHF Moves Steady Ahead of US PPI and Trump-Xi Summit
USD/CHF moved flat around 0.7805 in early European trading on Wednesday (May 13), as market participants awaited the release of US producer inflation data and assessed the direction of US-China trade talks this week.
The South China Morning Post reported that US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold trade and economic talks in South Korea, ahead of US President Donald Trump's official visit to China.
The summit between Trump and Chinese President Xi Jinping is scheduled for Thursday-Friday in Beijing. Trump previously stated that trade discussions would be a priority, while he said the Iran war issue would not occupy as much attention as trade.
Data-wise, the main focus will be on the US Producer Price Index (PPI) released later on Wednesday. Markets expect headline PPI to rise 4.9% (YoY) in April from 4.0% in March, while core PPI is projected to rise 4.3% from 3.8% previously, with the potential for dollar strengthening if inflationary pressures are perceived to intensify and fuel expectations of a Fed rate hike.
In Switzerland, the Swiss National Bank maintained its policy rate at 0%. Reuters economists project the rate to remain at that level for the remainder of 2026, leaving the SNB with more policy room to rely on foreign exchange intervention to manage the franc's strength. (asd)
Source: Newsmaker.id
