- USD/CHF continues to lose ground as the US Dollar attempts to retrace recent gains.
- US GDP Annualized increased by 5.2% against the expected rise of 5.0% in Q3.
- Swiss ZEW Survey Expectations eased at the decline of 29.6 against the previous decline of 37.8.
USD/CHF moves on a five-session losing streak, primarily driven by US Dollar (USD) weakness and subdued US Treasury yields. The pair is trading near 0.8730 during the Asian session on Thursday.
The decline in US bond yields over the past three sessions is attributed to the prevailing positive sentiment that the Federal Reserve (Fed) might conclude its interest rate hikes. However, as of the current press time on Thursday, the 10 and 2-year US Treasury yields stand slightly higher at 4.27% and 4.65%, respectively.
Furthermore, stronger US Gross Domestic Product Annualized data provided support for the US Dollar (USD). The report showed an increase of 5.2%, exceeding the expected rise of 5.0% in the third quarter. Furthermore, Initial Jobless Claims for the week ending on November 24 and Personal Consumption Expenditure (PCE) Price Index data will be eyed on Thursday.
Cleveland Federal Reserve (Fed) President Loretta Mester has underscored that any decision to implement additional hikes would depend on data-driven considerations. She conveyed that the current monetary policy is well-placed to assess forthcoming data on the economy and financial conditions.
On the Swiss side, The Swiss Franc (CHF) remains supported and strengthened by the hawkish comments from Swiss National Bank (SNB) Chairman Thomas Jordan, who has not dismissed the possibility of future interest rate hikes.
ZEW Survey Expectations report showed a decline of 29.6 figures in November as compared to the previous contraction of 37.8. Additionally, Swiss Real Retail Sales for October on Thursday, and the Gross Domestic Product for the third quarter on Friday will be closely monitored.
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