USD/CHF loses traction near 0.8770, all eyes are on the Jackson Hole Symposium

• USD/CHF trades in a narrow trading range of 0.8775-0.8782 amid the cautious mood.
• US Business activity in August expanded at a slow pace.
• China's deteriorating economic conditions might benefit the traditional safe-haven Swiss France.
• US weekly Jobless Claims, Durable Goods Orders, the Jackson Hole Symposium will be monitored by the traders.

The USD/CHF pair loses traction and edges lower to 0.8775 during the early Asian session on Thursday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, drops to 103.35 after retreating from a two-month high of 103.98. Markets turn cautious ahead of the release of US economic data and the Jackson Hole Symposium on Thursday.

Business activity in the United States in August expanded at a slow pace. The preliminary S&P Global Composite PMI decreased to 50.4, down from 52.0 previously and below market expectations of 52.0. This is the largest decrease since November 2022. S&P Global Manufacturing PMI fell to 47 from 49 in the prior month, while Services PMI dropped to 51 from 52.4 in the previous month. In response to the data, the Greenback weakened across the board and dragged the USD/CHF pair lower.

The Jackson Hole Symposium on Thursday could offer hints for further monetary policy. According to the CME Fed Watch Tool, market pricing in 88% that the Federal Reserve (Fed) will pause the interest rate in the September meeting.

On the Swiss Franc front, Switzerland’s Trade Balance narrowed to 3,129M against the market consensus of 4,300M. Meanwhile, Exports were down 16.7% in July. In the same period, Imports dropped by 12.5%, the Swiss Federal Customs Administration reported on Tuesday. However, mounting concerns about China's deteriorating economic conditions should temper optimism in the markets and among risk-averse investors. This, in turn, might benefit the traditional safe-haven Swiss France and act as a headwind for the USD/CHF pair.

The USD/CHF pair continues to be at the mercy of USD price dynamics in the lack of any market-moving economic data from Switzerland. Market participants will keep an eye on the US weekly Jobless Claims and Durable Goods Orders due later in the day. Also, the Jackson Hole Symposium will be a closely watched event ahead of the Federal Reserve (Fed) Chairman Jerome Powell's Speech on Friday. The events will be critical for determining a clear movement for the pair.