USD/CHF gains ground above 0.7750 as Fed chair nomination supports US Dollar

USD/CHF drifts higher to around 0.7780 in Thursday’s early European session.
Nomination of Kevin Warsh as Fed chair provides temporary support to the US Dollar.
US-Iran nuclear talks set for Oman on Friday.

The USD/CHF pair holds positive ground near 0.7780 during the early European session on Thursday, bolstered by renewed US Dollar (USD) demand. Analysts expect the Greenback’s recovery will be short-lived as traders remain concerned about the Federal Reserve’s (Fed) independence.

The USD rebounds after US President Donald Trump nominated former Fed governor Kevin Warsh as Fed chair last week. Traders anticipate a slower pace of interest rate cuts under his tenure and a focus on shrinking the Fed’s balance sheet.