- The US Dollar steadies near one-month highs against the Swiss Franc, consolidating gains after a 1.3% rally this week.
- Hopes of strong US ADP employment and preliminary GDP data are keeping the Dollar’s downside attempts contained.
- Forex volatility remains subdued on Wednesday, with investors awaiting the US Fed monetary policy decision.
The US Dollar’s reversal from one-month highs at 0.8075 against the Swiss Franc has been contained above 0.8040, with the pair consolidating gains after a 1.75% rally over the last three days. The Dollar remains buoyed by US trade deals with some of its main partners and solid macroeconomic figures, yet with investors awaiting the Fed release before placing directional bets.
Before the central bank’s monetary policy decision, the US ADP employment and preliminary GDP releases are expected to remain on the same line. Private payrolls are seen increasing by 78,000 in June, while the US is forecast to return to growth, at a 2.4% annualised rate, following a 0.5% contraction in Q1.
These figures are likely to provide further justification for the Federal Reserve to keep pushing back rate cuts until the economic effects of tariffs are clear. The bank is widelñy expected to keep interest rates on hold, but Chairman Powell’s press release will be carefully observed for clues about a September cut.
On the trade front, the latest round of talks between the US and China ended without significant advances, but the positive comments from both sides support the theory of an extension of the trade truce beyond the August 12 deadline. This is another source of support to the Greenback against the safe-haven Swiss Franc.
Economic Indicator
ADP Employment Change
The ADP Employment Change is a gauge of employment in the private sector released by the largest payroll processor in the US, Automatic Data Processing Inc. It measures the change in the number of people privately employed in the US. Generally speaking, a rise in the indicator has positive implications for consumer spending and is stimulative of economic growth. So a high reading is traditionally seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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Next release:
Wed Jul 30, 2025 12:15
Frequency:
Monthly
Consensus:
78K
Previous:
-33K
Source:
ADP Research Institute
Economic Indicator
Gross Domestic Product Annualized
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation’s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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Economic Indicator
Fed Interest Rate Decision
The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).
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Next release:
Wed Jul 30, 2025 18:00
Frequency:
Irregular
Consensus:
4.5%
Previous:
4.5%
Source:
Federal Reserve