USD/CHF struggle near 0.7950 as traders expect more than one Fed rate cut in 2026

USD/CAD stays under pressure as Fed dovish expectations for 2026 remain a major drag on the US Dollar.
This week, the Fed reduced interest rates by 25 bps to 3.50%-3.75%, while the SNB held them steady at 0%.
Investors await the US NFP data for fresh cues on the Fed’s monetary policy outlook.

The USD/CHF pair remains fragile near 0.7950 during the European trading session on Friday. The Swiss Franc pair is under pressure as traders expect the Federal Reserve (Fed) to deliver at least two interest rate cuts in 2026.

According to the CME FedWatch tool, there is a 58% chance that the Fed will cut borrowing rates at least two times through October 2026. Contrary to market expectations, the Fed’s dot plot showed in the policy announcement on Wednesday that officials see the Federal Fund Rate sliding to 3.4% by the end of 2026, suggesting that there will be one interest rate cut next year.