- USD/CHF loses ground as traders turn cautious ahead of key US economic data.
- The US dollar faces challenges as US Treasury yields extend losses amid rising odds of a Fed rate cut.
- The Swiss Consumer Price Index fell to 1.1% year-on-year in August, from 1.3% in July and below market expectations of 1.2%.
USD/CHF is trading around 0.8480 during early Wednesday hours, extending losses for the second consecutive session. Traders are cautious ahead of key economic data due out this week, including the ISM Services PMI and Non-Farm Payrolls (NFP). These data could shed light on the potential size of an expected rate cut by the Fed this month. Additionally, the Fed Beige Book and JOLTS job openings will be watched later in North American hours.
The Dollar is depreciating due to lower Treasury yields. The Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, is trading around 101.60 with 2-year and 10-year US Treasury bond yields standing at 3.86% and 3.83%, respectively, at the time of writing.
However, the dollar received support following the release of the ISM manufacturing PMI. The index rose to 47.2 in August from 46.8 in July, falling short of market expectations of 47.5. This marks the 21st contraction in US manufacturing activity in the past 22 months.
In Switzerland, the Federal Statistical Office released data on Tuesday, showing that the Consumer Price Index fell to 1.1% year-on-year in August, from 1.3% in July and below market expectations of 1.2%. Meanwhile, the CPI (MoM) was unchanged at 0.0%, down from an increase of 0.1% in August.
In addition, Switzerland’s gross domestic product (GDP) grew by 0.7% quarter-on-quarter in the second quarter, beating market forecasts and the 0.5% increase in the previous period. This marked the fastest economic expansion since the second quarter of 2022. Meanwhile, annual GDP increased by 1.8% in the second quarter, following the previous increase of 0.6%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
