The Swiss Franc (CHF) is trading slightly stronger against the US Dollar (USD) on Wednesday, with USD/CHF continuing losses for the second day in a row as the US Dollar remains weaker ahead of the Federal Reserve’s (Fed) interest rate decision at 19:00 GMT.
At the time of writing, the pair is trading around the 0.8044 level, under pressure from the weak US dollar and the cautious mood in the market ahead of the Fed decision.
Markets remain convinced that the central bank will cut interest rates by another 25 basis points, which will bring the federal funds rate down to a range of 3.50%-3.75%.
With the rate cut almost fully priced in, attention will be squarely on Fed Chairman Jerome Powell’s post-meeting press conference, along with an updated outline and economic outlook, as speculation grows surrounding a hawkish cut.
The Fed has already eased policy twice this year, making successive 25 basis point cuts in September and October. Traders now expect the central bank to signal a pause until early 2026 as policymakers assess the impact of those earlier cuts, especially while inflation remains above target and the labor market shows no signs of a sharp deterioration.
Updated dot charts will also play a crucial role in shaping market forecasts. September forecasts called for one rate cut in each of 2026 and 2027, no change in 2028, and holding the long-term interest rate at 3.0%.
Markets will be watching closely to see if the committee changes these expectations to the upside, which would reinforce the likelihood of a hawkish policy path and perhaps provide some relief to the US dollar.
In Switzerland, attention is now turning to the interest rate decision that the Swiss National Bank will issue on Thursday. Markets widely expect the Swiss Central Bank to keep interest rates unchanged at 0.00%.
According to a Reuters poll, 38 out of 40 economists expected no change at the December 11 meeting, while only two expected a return to -0.25%. Reuters also reported that 21 of 25 economists expect the interest rate to remain at 0.00% until the end of 2026, with only a few of them anticipating any cuts next year.
Inflation has fallen towards the lower end of the SNB’s target range (0-2%), and policymakers have repeatedly indicated that the threshold for a return to negative interest rates remains very high. The central bank also expects inflation to rise slightly in the coming quarters, reinforcing expectations of a steady policy stance.
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was the strongest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.05% | -0.08% | -0.13% | -0.03% | -0.04% | 0.04% | -0.22% | |
| euro | 0.05% | -0.03% | -0.07% | 0.03% | 0.00% | 0.10% | -0.16% | |
| GBP | 0.08% | 0.03% | -0.04% | 0.06% | 0.04% | 0.13% | -0.13% | |
| JPY | 0.13% | 0.07% | 0.04% | 0.11% | 0.10% | 0.17% | -0.08% | |
| Canadian | 0.03% | -0.03% | -0.06% | -0.11% | -0.01% | 0.07% | -0.19% | |
| Australian dollar | 0.04% | -0.01% | -0.04% | -0.10% | 0.01% | 0.09% | -0.18% | |
| New Zealand dollar | -0.04% | -0.10% | -0.13% | -0.17% | -0.07% | -0.09% | -0.27% | |
| Swiss franc | 0.22% | 0.16% | 0.13% | 0.08% | 0.19% | 0.18% | 0.27% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
