The USD/CHF currency pair plunged to a fresh three-week low of 0.8456 on Monday, after Federal Reserve Chair Jerome Powell solidified market expectations of a rate cut in September.
In a speech at the Jackson Hole symposium last week, the Fed Chair signaled the central bank was ready to adjust monetary policy, as the timing and size of rate cuts would depend on future economic data.
Powell pointed out that labor market risks had increased, while inflation risks had diminished.
Market expectations are split between a 25 basis point and a 50 basis point rate cut next month. What is more, markets continued to price in 100 basis points of Fed rate cuts by the end of this year.
Meanwhile, on the macro data front, Switzerland’s non-farm payrolls were reported to have surged 1.3% year-on-year to record 5.499 million in the second quarter of the year.
Employment in the industrial sector grew 0.7% YoY to 1.134 million, while that in services rose 1.4% YoY to 4.365 million, the data showed.
Currency Pair Performance
As of 8:50 GMT on Monday the USD/CHF currency pair was edging down 0.15% to trade at 0.8458.
The major Forex pair has retreated 3.67% so far in August, while extending the losses from the prior three months.
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