USD/CHF gains ground to near 0.8575 in Wednesday’s early European session. 
Reduced bets of a jumbo Fed rate cut in November support the USD ahead of the FOMC Minutes. 
The escalating Middle East geopolitical tensions might cap the pair’s upside. 
The USD/CHF pair trades on a stronger note to around 0.8575 during the early European session on Wednesday. The firmer US Dollar (USD) amid diminishing odds for more aggressive rate cuts by the Federal Reserve (Fed) underpins the pair. The release of the Federal Open Market Committee (FOMC) Minutes will take center stage later on Wednesday. The stronger-than-expected jobs report last Friday lifts the Greenback and had markets tempering the expected scale of upcoming interest rate reductions. Boston Fed President Susan

Iran launched over 200 ballistic missiles at Israel on Tuesday. The attack began at 7:30 p.m. Israel time, after the US had warned just hours before that a strike was imminent. The Israel Defence Forces reported several of the missiles were intercepted, and reports said one person was killed in the West Bank, per Bloomberg. Israeli Prime Minister Benjamin Netanyahu vows to retaliate against Iran for a missile attack on Tuesday, but Tehran warned that any response would result in "vast destruction," fuelling fears of a wider war.

Market reaction

At the time of press, the Gold price was down 0.06% on the day at $2,661.  

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that

Israel announced a “limited” ground operation against Hezbollah targets in the border area of southern Lebanon, sending its soldiers across the border, per local news agency Aljazeera. Israeli warplanes carried out massive strikes on Beirut’s southern suburbs after civilians were ordered to leave. At least 95 people were killed on Monday by Israeli attacks on Lebanon. 

Market reaction

At the time of press, the Gold price was up 0.02% on the day at $2,635. 

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a

Israel’s killing of Hezbollah leader Hassan Nasrallah has further fuelled geopolitical tensions in the Middle East and intensified the war at its border with Lebanon. The Iran-backed militant group says it will continue to fight, even as a growing number of senior Hezbollah figures have been killed, per CNN.

Indian Rupee gathers strength in Wednesday’s early European session. 
Improved risk appetite and a weakening USD support the INR. 
Investors await the US August New Home Sales and Fed’s Kugler speech on Wednesday. 
The Indian Rupee (INR) edges higher on Wednesday. Improved risk appetite following China’s stimulus measures and the softer US Dollar (USD) boost the local currency on the day. Nonetheless, rising crude oil prices, outflows related to a rejig of the FTSE equity indexes and renewed USD demand from large Indian importers might exert some selling pressure on the INR. The US New Home Sales data for August is due on Wednesday. Traders will take more cues from the US Federal Reserve’s (Fed) Governor Adriana Kugler speech. Any dovish remarks from the Fed

USD/CHF softens near 0.8465 in Friday’s early European session. 
Expectations of more rate cuts by the Fed continue to undermine the US Dollar. 
Switzerland’s trade surplus came in at 4.578 billion Swiss Francs in August.
The USD/CHF pair trades on a softer note around 0.8465 on Friday during the early European session. The Greenback remains under some selling pressure after the Federal Reserve’s (Fed) oversized interest rate cut on Wednesday. Traders will take more cues from the Fed’s Patrick Harker speech later on Friday. The Fed decided to cut its key lending rate by 50 basis points (bps) on Wednesday, the first reduction since the COVID-19 pandemic. Fed Chair Jerome Powell noted after the rate announcement that the US central bank "It is time to recalibrate our

The Swiss National Bank (SNB) Chairman Thomas Jordan on Thursday acknowledged difficulties that the strong Swiss Franc is causing for Swiss industry, which is already dealing with weaker demand from other European countries, per Reuters.  

Key quotes

The mandate of the SNB is to maintain price stability—a crucial precondition for society and a good functioning economy. Price stability is a crucial precondition for prosperity.Germany and Europe are the main markets for industry. If the growth is weak there, this automatically affects demand for our industrial goods. The exchange rate … does not make the situation easier. It makes it difficult for the industry, 

Market reaction

At the time of press, the USD/CHF pair was down 0.03% on the day at 0.8471. 

SNB

Russia carried out several air attacks on Ukraine this week, costing Moscow an estimated £1.1 billion. Meanwhile, Ukraine has warned it is closely watching on its border with Belarus after a recent buildup of troops there, according to Sky News. 

Last week, Kyiv’s foreign ministry accused Minsk of concentrating a "significant number of personnel" in the Gomel area near Ukraine’s northern border "under the guise of exercises." 

Market reaction

At the time of writing, the gold price (XAU/USD) is trading 0.12% lower on the day to trade at $2,518. 

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on”

GBP/JPY drifts higher to 191.20 in Tuesday’s early Asian session, up 0.40% on the day. 
The improved risk sentiment weighs on the safe-haven currency like the JPY. 
The BoE is expected to keep the rate steady at 5.0% at its September meeting.
The GBP/JPY cross recovers to near 191.20, snapping the two-day, losing streak during the early European session on Tuesday. The sell-off of the Japanese Yen (JPY) broadly provides some support to the cross. Japan’s National Consumer Price Index (CPI) will be the highlight on Friday.The Bank of Japan (BoJ) forecasted that a robust economic recovery in the Japanese economy would help inflation achieve its 2%  target sustainably. This would convince the BoJ to hike more rates after last month’s move as part of the BoJ’s continued

USD/CHF loses ground near 0.8620 in Tuesday’s early Asian session.
The expectation of three quarter-point rate cuts this year weighs on the USD. 
Easing geopolitical risks in the Middle East could cap the pair’s downside. 
The USD/CHF pair trades in negative territory for the third consecutive day around 0.8620 on Tuesday during the early European trading hours. The weaker US Dollar (USD) amid rate-cut expectation by the Federal Reserve (Fed) weighs on the pair. The Fed Chair Jerome Powell’s speech on Friday will be a closely watched event and might offer some hints about the path forward for US interest rates. The Fed is predicted to deliver 25 basis points (bps) at each of the remaining three meetings of 2024, according to a slim majority of economists polled by

On Sunday, Hamas published an official statement rejecting the terms for a hostage release-ceasefire deal which were discussed in Doha on Thursday and Friday, blaming Prime Minister Benjamin Netanyahu for putting up new obstacles in the talks. Per the local news agency Times of IsraelNetanyahu is to host visiting US Secretary of State Antony Blinken on Monday. Blinken is then set to fly to Cairo, where talks on a deal are ongoing. The US has said that it intends to host a second meeting later this week and wants to finalize an agreement by the end of the week.

Market reaction

At the time of writing, the gold price (XAU/USD) is trading 0.24% higher on the day to trade at $2,501. 

Risk sentiment FAQs

In the world of financial jargon the two widely used terms

USD/CHF drifts lower to near 0.8715 in Friday’s early Asian session. 
US July Retail Sales came in better than expected in July, lifting the Greenback. 
The renewed fear of geopolitical tension in the Middle East could support the CHF. 
The USD/CHF pair trades on a softer note near 0.8715 during the early European session on Friday. The pair edges lower on the back of the softer US Dollar (USD).  Meanwhile, the USD Index (DXY), a measure of the value of the US Dollar relative to a basket of foreign currencies, currently trades around 102.92, losing 0.12% on the day. The speculation of the US Federal Reserve rate cut in September continues to undermine the Greenback. Nonetheless, traders place lower bets on deeper rate cuts due to the optimistic US Initial Jobless

USD/CHF loses traction around 0.8590 in Thursday’s early European session, down 0.30% on the day. 
The US Fed is expected to cut rates more aggressively beginning in September.
Strong safe-haven demand benefits the Swiss Franc against the Greenback. 
The USD/CHF pair drifts lower to near 0.8590 during the early European session on Thursday. The Swiss Franc (CHF) gains traction from the unwinding of carry trades and escalating geopolitical tensions in the Middle East. Investors await the weekly US Initial Jobless Claims on Thursday for fresh impetus.Investors have fully expected the US Federal Reserve (Fed) to start easing its monetary policy in September, with 50 basis points (bps) cuts in both September and November, and another quarter-point cut in December. Wells

USD/CHF holds positive ground near 0.8840 in Thursday’s early European session. Fed’s Waller said that central bank is nearing rate cuts if there are no major surprises in inflation, employment data. Тhe rate cuts expectation by the SNB might drag the US Dollar lower. 

USD/CHF trades on a weaker note near 0.8925 in Tuesday’s early Asian session. Fed policymakers retain a cautious approach to rate cuts, emphasizing that their decisions would be data-dependent. The Swiss Franc is supported by the escalating geopolitical tensions in the Middle East and Ukraine.