USD/CHF nears 0.7950 amid broad-based US Dollar's strength

• The US Dollar accelerates its recovery amid a risk-off mood and nears 0.7950.
• Fed Chair Powell warned that further interest rate cuts are not guaranteed.
• In Switzerland, all eyes are on the SNB's monetary policy decision, due on Thursday,

The US Dollar accelerated its recovery against the Swiss Franc on Wednesday, reaching session lows above 0.7940. A moderate risk-off market is boosting the US Dollar across the board, while the CHF remains on its back foot ahead of Thursday's SNB monetary policy decision.

US data released on Tuesday revealed that business activity in both the services and manufacturing sectors slowed down, in line with market expectations, although it remains at levels consistent with moderate growth.

Later on, Fed Chair Jerome Powell reiterated the challenging situation that the inflationary risks combined with a softening labor market pose for the bank's monetary policy setting. Powell warned against taking further monetary easing for granted, but that did not alter investors' expectations that the bank will cut rates in November, and probably also in December.

In Switzerland, the ZEW Survey, released on Wednesday ,has shown an unexpected improvement of business conditions in September, with its Expectations Index rising to -46.4 from -53.8 in August.

Investors' focus, however, is on the SNB's monetary policy decision due on Thursday. The bank is expected to keep rates on hold at the current 0% level, but the weak macroeconomic data and the uncertainty around the trade relations with the US might force the bank to signal further cuts in the near future. The risk for the Swiss Franc is skewed to the downside.