USD/CHF Awaits US Data: Ready to Accelerate or Weaken?
The USD/CHF currency pair moved steadily around 0.7960 in early European trading on Monday. However, upside potential appears limited as the market remains cautious ahead of the release of a series of important economic data from the United States later this week. On Tuesday, the market will receive US employment data for October and November, which was delayed due to the government shutdown, followed by the release of US CPI inflation data on Thursday.
Fundamentally, the US dollar remains pressured by expectations that the Federal Reserve will cut interest rates further in 2026. The Fed's latest dot plot indicates only one additional cut next year, while the Swiss National Bank (SNB) has maintained its policy rate at 0% and is expected to maintain this stance long enough to control inflation. This condition makes the Swiss franc attractive as a safe haven currency, especially amidst a risk-averse market environment.
Analysts believe that the Nonfarm Payrolls (NFP) and CPI reports, due to be released in the next few days, could determine the next direction for USD/CHF. Sim Moh Siong, a currency strategist at Bank of Singapore, said policymakers will likely interpret the labor data with extra caution to gauge US labor market trends. If the data comes out stronger than expected, it could potentially boost the US dollar against the Swiss franc in the short term. However, if the results disappoint, pressure on the USD could persist, sending USD/CHF lower again. (az)
Source: Newsmaker.id
