The US Dollar/Swiss Franc pair traded higher on Monday, supported by expectations of moderate US interest rate cuts and geopolitical tensions in the Middle East.
The Federal Reserve is widely expected to cut interest rates by 25 basis points in November, following a series of strong US economic data. This has strengthened the US Dollar against the Swiss Franc.
However, geopolitical risks, such as the escalating tensions between Israel and Lebanon, could limit the upside for the USD/CHF pair.
Key Points:
- US Interest Rate Cuts: Expectations of moderate US interest rate cuts are supporting the US Dollar.
- Geopolitical Tensions: Rising tensions in the Middle East could limit the upside for the USD/CHF pair.
- US Dollar Strength: The US Dollar Index has reached a three-month high, indicating overall strength.