The USD/CHF pair retraced losses from the previous session after the U.S. Federal Reserve maintained its benchmark lending rate unchanged between 5.25% and 5.50% during its latest policy meeting, in line with market expectations. As a result, the pair edged higher to approach 0.8950 during Thursday’s Asian session.
However, the U.S. Dollar encountered resistance following the release of softer inflation figures from the United States. The Consumer Price Index (CPI) rose by 3.3% year-over-year in May, slightly below both the previous reading and the expected 3.4%. Meanwhile, the core CPI, excluding volatile food and energy prices, increased by 3.4% year-over-year, down from April’s 3.6% rise and slightly below the anticipated 3.5%.
Federal Reserve Chair Jerome Powell, in a press conference following the FOMC decision, emphasized that the current restrictive monetary policy stance is achieving the intended impact on inflation. Powell stated, “So far this year, we have not seen enough evidence to warrant a rate cut.”
On the Swiss side, the Swiss National Bank (SNB) is expected to maintain interest rates in June, providing potential support for the Swiss Franc (CHF). SNB Chairman Thomas J. Jordan previously highlighted minor upward risks to inflation expectations.
Market participants are now looking ahead to the SNB Financial Stability Report, scheduled for Thursday, which will assess the stability of the banking sector and financial market infrastructure. Additionally, focus will be on Producer and Import Prices data.
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