- USD/CHF wobbles as investors seek fresh developments on Fed Cook’s lawsuit against her termination by US President Trump.
- Fed Cook’s lawyer stated that her removal lacks any factual or legal basis.
- Investors await US PCE inflation and Swiss Q2 GDP data.
The USD/CHF pair trades in a tight range around 0.8050 during the Asian trading session on Wednesday. The Swiss Franc pair consolidates as the US Dollar (USD) trades calmly, with investors seeking fresh development on Federal Reserve (Fed) Governor Lisa Cook’s termination by United States (US) President Donald Trump over mortgage allegations on late Monday.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks up to near 98.35.
US President Trump shared a letter on Truth.Social in which he announced the removal of Fed Governor Cook, citing that she made false statements on one or more mortgage agreements.
Meanwhile, Fed’s Cook has decided to defend allegations by filing a lawsuit against US President Trump’s decision to fire her. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis. We will be filing a lawsuit challenging this illegal action,” Cook’s lawyer, prominent Washington attorney Abbe Lowell, said, Reuters reported.
On the economic front, investors await the Personal Consumption Expenditure Price Index (PCE) data for July, which is scheduled to be released on Friday. The inflation data will influence market expectations for the Fed’s monetary policy outlook.
According to the CME FedWatch tool, there is an 87% chance that the Fed will cut interest rates in the September monetary policy meeting.
In the Swiss economy, investors await the Q2 Gross Domestic Product (GDP) data, which will be published on Thursday. The Swiss economy is expected to have expanded at a moderate pace of 0.1%, against a 0.5% growth seen in the first quarter of the year.
