USD/CHF consolidates below 0.9250 ahead of FOMC
- USD/CHF trades modestly lower on Wednesday in the early Asian trading hours.
- US benchmark 10-year Treasury yields rebounds, US Dollar turns mildly negative.
- Swiss Franc gains on its safe-haven appeal amid prevalent risk-off mood, FOMC eyed.
The USD/CHF pair remains muted in the initial Asian trading hours on Wednesday. The pair continued to fall since the beginning of the week after testing the five-month high above 0.9330 on Monday.
At the time of writing, USD/CHF is trading at 0.9234, down 0.01% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, turns mildly negative near 93.20 with 0.05% losses whereas the US yields stand strong at 1.32% gains,limiting the downside for the greenback.
Investors remain anxious ahead of the FOMC two-day policy meeting, which will conclude on Wednesday. Fed’s officials are expected to signal a start to scaling down the monthly asset purchase program.
It is worth noting that, S&P 500 Futures is trading at 4,3332, down 0.25% losses.
On the other hand, the Swiss Franc holds some ground on its safe-haven appeal amid reduced risk appetite despite IMF comments on China. As per Reuters, International Monetary Fund (IMF) Chief Economist Gita Gopinath said that China has tools and policy space to prevent the Evergrande situation from turning into a systematic crisis.
In addition to that, Switzerland’s trade surplus widened to a fresh record high of CHF 4.5 billion in August, as exports rose more than imports, which kept Swiss currency on the higher side.
As for now, traders wait for the Swiss Current Account, SNB Quarterly Bulletin, US Fed Interest Rate Decision, and FOMC Economic Projections to gain fresh trading impetus.
USD/CHF additional levels