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

The USD/CHF pair is struggling near 0.7950 during the European trading session. This is largely due to traders' expectations of at least two interest rate cuts from the Federal Reserve in 2026. The movement of USD/CHF is particularly sensitive to U.S. monetary policy, with many traders focusing on the next rate decision. Concerns about a slowing U.S. economy could be impacting this pair; lower interest rates may weaken the dollar against other currencies. Therefore, the volatility of USD/CHF could increase based on forthcoming economic data and Fed announcements. The current level of 0.7950 may act as short-term support, but whether a significant rebound occurs will depend on upcoming economic indicators.