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Swiss Franc steadies against US Dollar as Fed decision looms
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FXStreet Forex & Commodities News
The Swiss Franc (CHF) steadies against the US Dollar (USD) on Tuesday as the Greenback gives up its early gains, with traders turning cautious ahead of the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
The Greenback weakens as Oil prices extend their pullback following a pause in attacks between the United States and Iran.
Even if the Fed leaves rates unchanged, policymakers are expected to retain a hawkish stance, which could keep the US Dollar supported.
Meanwhile, the Swiss Franc has been among the worst-performing major currencies since the US-Iran war began.
The Swiss National Bank's (SNB) zero-interest-rate policy makes the Franc attractive for carry trades, while broad-based US Dollar strength and the central bank’s readiness to counter excessive Franc appreciation add to the pressure.