aims to revisit a five-month high of 0.8960 in Friday’s North American session. The Swiss Franc pair ticks higher as the outlook of the Swiss currency has weakened across the board after the Swiss National Bank (SNB) surprisingly reduced its key borrowing rates by 50 basis points (bps) to 0.5% on Thursday.Market participants anticipated the cutting interest rates by 25 bps as the central bank remained worried about the risks of inflation undershooting the bank’s target and growing concerns over the global markets due to potential tariffs by (US) President-elect Donald Trump.After a larger-than-usual interest rate cut decision, SNB Chairman Martin Schlegel commented, “With our easing of monetary policy today we are countering the lower inflationary pressure.” On the interest rate outlook, Schlegel said, “We will continue to monitor the situation closely, and will adjust our monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.”Meanwhile, the US Dollar (USD) surrenders its intraday gains and turns negative as the (Fed) is widely anticipated to cut its key borrowing rates by 25 bps to 4.25%-4.50% in the policy meeting on Wednesday. The US (DXY), which tracks the Greenback’s value against six major currencies, falls back to near 106.75 after facing selling pressure above 107.00.Though the Fed is certain to cut interest rates next week, it is expected to pause the policy-easing cycle in January as progress in disinflation appears to have stalled. According to the CME FedWatch tool, there is a 77% chance that the Fed will leave interest rates unchanged next monthMore By This Author:NZD/USD Price Forecast: Reversal Setup On Chart But Will Unlikely Set Off EUR/USD Rises As ECB Interest-Rate Decision Looms EUR/GBP trades with caution near two-year low around 0.8250 ahead of ECB policy meet
