• As the US Dollar endeavors to retrace recent gains, USD/CHF continues to decline.
  • Third-quarter annualized US GDP growth was 5.2%, exceeding the anticipated increase of 5.0%.
  • Expectations for the Swiss ZEW Survey decreased by 29.6 points, compared to the previous decline of 37.8 points.

USD/CHF is on a losing streak of five sessions, which is predominantly attributable to weakness in the US Dollar (USD) and subdued US Treasury yields. The pair is trading near 0.8730 on Thursday during the Asian trading session.

The current three-session decline in US bond yields can be ascribed to the prevailing optimistic sentiment that the Federal Reserve (Fed) may reach a conclusion to its interest rate increases. Nonetheless, as of Thursday’s current press time, the yields on 10- and 2-year US Treasury notes are marginally elevated at 4.27% and 4.65%, respectively.

Moreover, the US Dollar (USD) was bolstered by more robust annualized data on the country’s gross domestic product. The findings of the report indicated a 5.2% surge, surpassing the anticipated growth of 5.0% for the third quarter. On Thursday, attention will also be directed towards the Personal Consumption Expenditure (PCE) Price Index and Initial Jobless Claims data for the week ending November 24.

Loretta Mester, president of the Cleveland Federal Reserve (Fed), has emphasized that the implementation of further rate increases would be contingent upon data-driven evaluations. She expressed that the existing monetary policy is in a favorable position to evaluate upcoming economic and financial data.

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In Switzerland, the Swiss Franc (CHF) continues to be bolstered and supported by Swiss National Bank (SNB) Chairman Thomas Jordan’s hawkish remarks; he has not ruled out the possibility of further interest rate increases.

November saw a decrease of 29.6 percentage points in the ZEW Survey Expectations report, compared to the previous contraction of 37.8 percentage points. Furthermore, specific attention will be paid to the Gross Domestic Product (GDP) for the third quarter on Friday and the Real Retail Sales for October in Switzerland on Thursday.


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