The USD/CHF pair remains subdued near 0.9045 in Friday’s early European session, as the US Dollar (USD) faces headwinds following dovish remarks by US President Donald Trump. During his virtual address at the World Economic Forum in Davos, Trump advocated for lower interest rates globally, emphasizing that declining oil prices should trigger immediate rate cuts. His comments weighed on the Greenback, leaving traders focused on upcoming US flash PMI data for January and next week’s Federal Reserve (Fed) meeting, where rates are expected to remain steady at 4.25%-4.50%.
Geopolitical developments also play a role, with tensions in the Middle East easing following an Israel-Hamas ceasefire deal, reducing demand for safe-haven assets like the Swiss Franc (CHF). However, any renewed global uncertainties could support the CHF against the USD.
Trade Idea:
Consider selling USD/CHF below 0.9035, targeting 0.9000, with a stop-loss at 0.9060. Monitor US PMI data for short-term direction.