Post #15425

USD/CHF Consolidates as Diverging Policies Take Center Stage USD/CHF is trading this morning but still stuck inside a broad range between 0.8100 and 0.7900. The Swiss Franc continues to trade mostly on risk sentiment rather than policy. The SNB kept rates at 0%, and officials keep repeating that the bar for going negative again is extremely high — meaning no cuts are coming. Swiss inflation continues to stay cool this early morning. Headline CPI came in flat YoY and Core CPI dropped to a four-year low Two straight downside surprises leave inflation below where the SNB expected, but still not enough to push them toward easing. With rates already at zero, the SNB remains reluctant to cut any further, which keeps CHF supported as a safe-haven. The dollar has been under steady pressure after Fed’s Williams essentially endorsed a December rate cut. Also, Hassett — a known dove — is the frontrunner for Fed Chair only accelerated the downside. Markets now price an 89% chance of a December cut. - Alan