Swiss Franc Climbs Amid Risk Aversion
(RTTNews) - The Swiss franc was higher against its most major counterparts in the European session on Wednesday amid risk aversion, as investors digested mixed earnings and looked ahead to the U.S. Federal Reserve's interest rate decision later in the day.
The Fed is expected to raise rates by 25 basis points when it concludes meeting later in the day.
Traders await Fed Chair Jerome Powell's press conference for hints on the central bank's rate path going forward.
Analysts remain divided over whether the U.S. central bank will signal a pause for September.
The Fed policy decision will be followed by the ECB on Thursday and BOJ on Friday.
The franc touched 0.9535 against the euro, its highest level since September 2022. If the currency rises further, 0.94 is likely seen as its next upside target level.
The franc climbed to a 6-day high of 0.8610 against the greenback and a 2-day high of 1.1109 against the pound, off its early lows of 0.8656 and 1.1153, respectively. The franc is seen finding resistance around 0.84 against the greenback and 1.10 against the pound.
In contrast, the franc pulled back to 162.52 against the yen, reversing from a 2-day high of 163.38 seen in early trading. The franc is likely to challenge support around the 144.00 region.
Looking ahead, U.S. new home sales for June will be published in the New York session.
At 2:00 pm ET, the Fed announces its decision on interest rate. The central bank is expected to raise the target range for the federal funds rate by 25 basis points to 5.25 percent to 5.50 percent.
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