- USD/CHF trades in negative territory around 0.8928, despite the upbeat US data.
- The US Purchasing Management Index (PMI) data for October came in better than expected.
- The rising geopolitical tension in the Middle East might boost the CHF.
- Market players will monitor the Swiss ZEW Survey Expectations for October ahead of the US growth numbers.
The USD/CHF pair loses traction during the Asian trading hours on Wednesday. That being said, the geopolitical conflicts in the Middle East continue to hang over the market and benefit Swiss France (CHF). The pair currently trades near 0.8928, down 0.05% on the day.
The US Purchasing Management Index (PMI) data on Tuesday came in better than expected. The flash Composite PMI for October climbed to 51.0 from 50.2. Meanwhile, the US S&P Global Manufacturing PMI for October surged to 50, better than the market expectation of 49.5. This is the first time in six months that manufacturing has not fallen below 50. The Services PMI rose to 50.9, above the consensus. The Services PMI rose to 50.9, while Manufacturing PMI grew to 50.0. This is the first time in six months that manufacturing has not fallen below 50.
Additionally, the Richmond Manufacturing Index for October fell to 3 from 5 in the previous reading, below the market expectation. The upbeat US economic data alleviated fears that tighter monetary policy and higher borrowing rates would dampen investment and industrial activity. However, traders will take cues from the US growth numbers and core Personal Consumption Expenditure Index (PCE) data for fresh impetus. The stronger-than-expected data could lift the Greenback and act as a tailwind for the USD/CHF pair.
On the other hand, the rising tension in the Middle East might cap the upside of the pair and boost the safe-haven assets like Swiss France. Last week, the Swiss Trade surplus widened more than expected in September. Trade Balance arrived at 6,316M versus 3,814M seen in the previous month, above the market consensus of 3,770M. Meanwhile, Exports surged to 24,795M MoM in September from the previous reading of 20,932M whereas Imports came in at 18,480M MoM versus 17,118M prior.
Market players will monitor the Swiss ZEW Survey Expectations for October. Later this week, the preliminary estimate of the US Q3 Gross Domestic Product (GDP) will be due on Thursday, and the US Core Personal Consumption Expenditure Index (PCE) will be due on Friday. These events could give a clear direction to the USD/CHF pair.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Pound Sterling edges higher after BoE rate cut, focus shifts to Governor Bailey – LIVE
The Bank of England (BoE) lowered the policy rate by 25 basis points to 4.75% following the November meeting, as expected, and said that the budget is forecast to boost inflation. BoE Governor Bailey will speak on the policy outlook in a press conference next.
EUR/USD clings to gains above 1.0750 amid US Dollar pullback
EUR/USD holds higher ground and trades above 1.0750 on Thursday. The pair finds support from a broad US Dollar retreat, as traders unwind their Trump win-inspired USD longs ahead of the Federal Reserve's highly-anticipated policy announcements.
Gold recovers above $2,660, awaits Fed rate decision
Gold recovers slightly following Wednesday's sharp decline and trades above $2,660. The benchmark 10-year US Treasury bond yield struggles to push higher after Trump-inspired upsurge, allowing XAU/USD to hold its ground ahead of the Fed policy decisions.
Federal Reserve expected to deliver 25 bps interest-rate cut, shrugging off Trump victory
The Federal Reserve is widely expected to lower the policy rate after Donald Trump won the US presidential election. Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.