USD/CHF oscillates at around 0.9100 as Fed keeps rates on hold, eyes on Powell conferences

• USD/CHF retreats from 0.9107 and remains within the 0.9090/0.9107 range after the Fed's rate decision.
• Fed Chair Jerome Powell acknowledges economic resilience and potential upward pressure on inflation.
• Traders bet on the end of Fed rate hikes, with first-rate cuts anticipated in June 2024.

The USD/CHF retreats some from daily highs reached at 0.9107, though it remains trading within the 0.9090/0.9107 area after the US Federal Reserve (Fed) decided to keep rates unchanged at the 5.25%-5.50% range while continuing to reduce its security holdings (balance sheet).

Fed’s Powell initial comments

The US Federal Reserve Chair Jerome Powell is taking the stand and so far said the Fed is attentive to recent data showing the resilience of economic data and demand for labor. he added that those situations could put upward pressure on inflation. He added “We are not confident policy is sufficiently restrictive,” triggering a jump in the US Dollar.

Summary of the Fed’s latest monetary policy statement

Federal Reserve officials voted unnecessarily on their latest decision. Policymakers acknowledged that economic activity expanded steadily in Q3, mentioning that job gains had moderated. However, they noted that inflation is too high and emphasized the committee is firmly committed to returning inflation to its 2% target.

According to Reuters, US short-term interest rate futures are added to earlier gains as traders bet Fed rate hikes have ended. Additionally, the first-rate cuts are eyed at June 2024.

USD/CHF Technical Levels