The pair trades on a softer note around 0.8465 on Friday during the early European session. The Greenback remains under some selling pressure after the Federal Reserve’s (Fed) oversized interest rate cut on Wednesday. Traders will take more cues from the Fed’s Patrick Harker speech later on Friday.
The Fed decided to cut its key lending rate by 50 basis points (bps) on Wednesday, the first reduction since the COVID-19 pandemic. Fed Chair noted after the rate announcement that the US central bank “It is time to recalibrate our policy to something that is more appropriate given the progress on inflation, and on employment moving to a more sustainable level.”
The Fed officials also penciled in an additional half-point of cuts before the end of this year. This, in turn, might exert some selling pressure on the US Dollar (USD).
On the Swiss front, Switzerland’s trade surplus came in at 4.578 billion Swiss Francs in August, according to the Federal Customs Office on Thursday. Additionally, the country’s Exports fell to 20.491 billion Swiss Francs in August and Imports declined to 15.912 billion Swiss Francs in the same reported period.
Israeli warplanes and artillery attacked Hezbollah in southern Lebanon on Thursday. The action came after the militia’s pagers and walkie-talkies exploded last week, killing scores and injuring thousands across Lebanon, according to CNBC. Any signs of escalating geopolitical risks in the region could boost the safe-haven flows, benefiting the Swiss Franc (CHF). More By This Author:EUR/JPY Jumps To Two-week Highs Near 160.00 After BoJ Rate Decision, Eyes On ECB’s Lagarde Speech WTI Softens Below $71.00, Ongoing Geopolitical Tensions Might Cap Its Downside USD/CAD Trades With Mild Gains Above 1.3600, Fed Cuts Rates For First Time In Four Years
