USD/CHF drifts away from the 0.8000 level ahead of the FOMC minutes
- The US Dollar is giving away gains, although it remains trading within previous ranges.
- The Dollar and the Swiss Franc remain buoyed by the cautious market sentiment.
- Investors look to the release of the FOMC minutes fri further USD guidance.
The US Dollar recovery from 14-year lows, at 0.7870, was rejected on Tuesday at 0.8000 for the second consecutive day, and the pair is trading lower on Wednesday, returning to the mid-range of the 0.7900s.
The Swiss Franc is drawing support from a cautious market sentiment and a somewhat softer Dollar, amid a mild pullback in US Treasury yields to retrace some losses. However, price action remains trapped well within Monday’s trading range.
The Dollar and the Swiss Franc appreciate in cautious markets
Risk sentiment has improved somewhat, as investors digested an unexpected turn in Trump’s trade saga, but risk appetite remains subdued, given the highly uncertain outlook for global trade. Safe assets, such as the US Dollar and the Swiss Franc, are among the largest beneficiaries in this context.
The focus now shifts to the release of the minutes of June’s Federal Reserve meeting. Powell surprised after that meeting, with an unexpectedly hawkish stance that curbed hopes of rate cuts in July or September and provided support to the US Dollar.
Later on, US employment data from June confirmed the resilience of the labour market and eased pressures, other than those by Trump, to reduce interest rates. The meeting minutes might endorse that view later today and give an additional boost to the Greenback.
Economic Indicator
FOMC Minutes
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Next release: Wed Jul 09, 2025 18:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Federal Reserve
Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don’t have access to the publication before the release, unlike the FOMC’s Policy Statement.
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