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USD/CHF rebounds from 0.9000 ahead of US inflation data

November 14, 2023| Forex Market


  • USD/CHF seems well-cushioned above 0.9000 ahead of US CPI data.
  • A stubborn inflation report may allow the Fed to emphasize raising interest rates further.
  • SNB Jordan is likely to emphasize keeping interest rates higher to keep inflation below 2%.

The USD/CHF pair remained well-supported above the psychological support of 0.9000 on Tuesday. The Swiss Franc asset is broadly trading sideways as investors await the United States Consumer Price Index (CPI) data for October, which will be published at 13:30 GMT.

S&P500 futures trade lackluster in the early European session, portraying caution among market participants ahead of US inflation data. The US Dollar Index (DXY) rebounds from 105.60 but broadly trades sideways as the release of the consumer inflation data will provide fresh cues about monetary policy action by the Federal Reserve (Fed).

As per the consensus, monthly headline CPI grew at a nominal pace of 0.1% against 0.4% growth in September. The annual CPI rose by 3.3% versus. 3.7% increase in September. The monthly and annual core CPI that excludes volatile oil and food prices expanded at a steady pace of 0.3% and 4.1%, respectively.

A stubborn core inflation report would allow Federal Reserve (Fed) policymakers to lean towards the further policy-tightening narrative. Last week, Fed Chair Jerome Powell categorized current monetary policy as inadequate to bring down inflation to 2%.

On the Swiss Franc front, investors await the speech from Swiss National Bank (SNB) Chairman Thomas J. Jordan. SNB Jordan is expected to guide about likely monetary policy action. Jordan is likely to emphasize on keeping interest rates higher to keep inflation below 2%.


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