USDCHF pair faces mild losses amid last week’s decline. The pair is currently trading around the 0.8840 level, experiencing slight losses after a decline of over 1% last week. Investors are adopting a cautious stance. The market remains relatively subdued as they analyze the implications of last week’s US data. During Monday’s session, the pair exhibited limited range movements, reflecting a calm market environment.
The recent US Core Consumer Price Index (CPI) data disappointed, showing a year-on-year growth of 4.0%. This appears to be slightly below the expected 4.1%. These softer inflation figures significantly impacted the USD. It is now prompting investors to reevaluate their expectations regarding further interest rate hikes by the Federal Reserve (Fed).
Some even consider the possibility of rate cuts. With no major economic reports scheduled for the remainder of the week, market attention has shifted to Wednesday’s. This has to do with release of the Federal Open Market Committee (FOMC) November minutes. Investors eagerly await insights into the Fed’s future monetary policy decisions, especially in light of the recent inflation dynamics.
CHF Outlook: Weakening Against G10 Peers
According to economists at Citigroup, the Swiss Franc (CHF) is poised to weaken against most of its G10 counterparts in the medium term. The Swiss National Bank (SNB), which signaled a pause in its tightening cycle during its September meeting. It suggests that the cycle may have come to an end. Consequently, the CHF is biased toward an extended period of underperformance.
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