USD/CHF Slightly Strengthens Amid Weak Swiss Inflation Data
The USD/CHF currency pair edged above 0.8050 on Thursday, boosted by a weakening Swiss Franc after Swiss inflation data showed an unexpected contraction. Swiss consumer prices fell 0.1% in August, the first monthly decline since January, contrary to market expectations for a stable reading. Annually, inflation remained low at 0.2%, the same as the previous month.
The weak inflation data fueled speculation that the Swiss National Bank (SNB) could cut interest rates again to negative levels in the coming months. This pressured the Franc, while the US Dollar managed to strengthen, albeit with limited gains. Currently, USD/CHF remains trapped below the 0.8060–0.8070 resistance area after hitting a low of 0.8025 on Wednesday.
From the US side, the disappointing JOLTS jobs report added pressure on the Federal Reserve to cut interest rates soon. The data showed the worst performance in 10 months, reinforcing the dovish outlook of several Fed officials. Fed Governor Christopher Waller and Atlanta Fed President Raphael Bostic both signaled a rate cut in September, with the potential for further cuts in 2025.
Investors now await the release of ADP Employment data, the ISM Services PMI, and, ultimately, the Nonfarm Payrolls report on Friday. The results of these data will determine the direction of the Fed's future policy, with the market currently almost certain that the 25 basis point interest rate cut will be removed this month. (ayu)
Source: Newsmaker.id
