USD/CHF loses ground as dollar weakens in data-heavy week

• The USD/CHF pair fails to maintain its gains, while the Dollar remains moderate pending various US data.
• Market sentiment remains pessimistic due to escalating tensions in the Middle East.
• The Fed’s Logan said rising bond yields and recent economic data have bought the central bank some time.

The pair USD/CHF loses gains after fighting around 0.8950 in the European session. The pair faced selling pressure while the US Dollar turned subdued in a data-packed week. The US Dollar Index (DXY) is trading modestly above the crucial support of 106.00.

S&P 500 futures added some losses in the London session, portraying a discouraging sentiment in the markets due to escalating tensions in the Middle East. US 10-year Treasury yields rise to 5% on expectations of a sustained increase in interest rates by the Federal Reserve (Fed) over a longer period.

Fed officials support keeping interest rates between 5.25 and 5.50%, as rising long-term bond yields are enough to ease overall spending and investment. Dallas Fed President Lorie Logan stated last week that rising bond yields and recent economic data have bought some time for the central bank to keep interest rates unchanged.

This week, investors will focus on preliminary S&P Global PMI data for October, durable goods orders, and underlying personal consumption expenditure (PCE) price index data for September. The most important event will be the third quarter Gross Domestic Product (GDP) data, which will be announced on Thursday. According to the consensus, the growth rate was 4.2%, compared to the 2.1% annualized in the April-June quarter.

As for the Swiss franc, investors await expectations from the October ZEW survey. In September, the sentiment data stood at -27.6. A further decline in the data would indicate that business conditions, the labor market and other elements have worsened further.