USD/CHF Remains Unchanged Below The 0.9000 Threshold Advance Of Swiss Trade Balance And US Data

During Tuesday's early Asian trading hours, the USD/CHF currency pair fluctuates around 0.8970. In the meantime, the US Dollar Index (DXY), a measure of the value of the USD relative to six other major currencies, is experiencing some follow-through selling but remains above 105.10. Markets prefer to wait on the periphery ahead of the interest rate policy announcement from the Federal Reserve (Fed) and the Swiss National Bank (SNB) on Wednesday and Thursday, respectively.

The Federal Reserve (Fed) is slated to announce the two-day monetary policy meeting on Wednesday, and it is widely anticipated that interest rates will remain unchanged. There is a 99% chance that the Federal Reserve will maintain the status quo with interest rates. According to the CME Fedwatch Tool, the probability of a meeting in November has dropped below 30%. In turn, this may push the US Dollar lower against its competitors and act as a headwind for the USD/CHF pair. Traders will attentively monitor Federal Reserve Chairman Jerome Powell's press conference, which may provide hints about the future direction of interest rates.

On Thursday, the Swiss National Bank (SNB) is anticipated to increase additional interest rates by 25 basis points (bps) from 1.75 percent to 2 percent. The Swiss central bank is anticipated to maintain its restrictive stance in order to maintain price stability, as the most recent year-over-year inflation rate of 1.6% is still below the 2% target.

On Monday, US Secretary of State Antony Blinken conferred with Chinese Vice President Han Zheng on the sidelines of the General Assembly of the United Nations. The US Department of State stated that the discussion was "open and productive." Traders will closely monitor the news regarding the US-China relationship. Nonetheless, the renewed trade war tensions between the United States and China may benefit the traditional safe-haven Swiss franc and operate as a headwind for USD/CHF.

The Swiss Trade Balance, US Housing Starts, and US Building Permits will be released later in the day. Before Thursday's SNB meeting, market participants will intently monitor Wednesday's Fed interest rate decision. These events may spark market volatility and provide a distinct direction for the USD/CHF pair.