FX.co ★ Swiss Franc Holds firm

The Swiss franc maintained a trading position slightly above 0.80 per USD, hovering near its highest levels for 2021. This stability is reinforced by expectations that the Swiss National Bank (SNB) will not implement immediate rate cuts. Many analysts predict that the SNB will retain its policy rate at 0% in December, given the anticipated rise in inflation. Additionally, the franc has gained traction from a new trade agreement between the Swiss government and the Trump administration, which has effectively reduced the US tariff from 39% to 15%. This agreement is likely to bolster Switzerland's economic recovery following the contraction experienced in the third quarter due to tariffs. In the broader market, demand for safe-haven assets has waned somewhat, buoyed by Nvidia's impressive financial performance and potential progress towards a peace resolution in the Ukraine conflict. Nonetheless, investors are treading carefully in anticipation of the still-pending US economic data, which could prove influential in determining the Federal Reserve's future policy actions.