USD/CHF Consolidates, Focus Shifts to US Inflation
The USD/CHF pair moved moderately on Friday (February 13th), holding around the 0.77 level as markets reassessed central bank policy ahead of the US inflation release. In recent trading, USD/CHF hovered around 0.770–0.771, with daily movement likely limited as market participants avoided large positions ahead of the CPI data.
From the Swiss side, sentiment toward the franc weakened after inflation data showed price pressures remained "light." Low inflation has raised concerns about room for policy easing, although the SNB has repeatedly emphasized that the threshold for returning to negative interest rates is much higher and that they will act only if price stability is seriously threatened.
Meanwhile, the dollar received support from the risk-off market mood (especially following volatility related to tech/AI stocks), but the momentum was not strong enough to break the USD/CHF consolidation pattern. In terms of performance, the USD/CHF has weakened by around 0.9% over the past week, indicating that pressure on the dollar has not completely dissipated despite the "cushion" of defensive sentiment.
The main focus now turns to the US CPI. Market consensus expects January inflation to be around 0.3% (m/m) and slowing to around 2.5% (y/y), which will influence expectations regarding the Fed's interest rate path—and typically determines whether the dollar continues to strengthen or loses steam.
Source: Newsmaker.id