USD/CHF trades below 0.9150 after moderate US data, focus shift to US Core PCE

• USD/CHF pulls back from the highest levels since March.
• Improved US Treasury yields could limit the losses of the US Dollar.
• US Core PCE is due on Friday, expected to reduce from 4.2% to 3.9%.
• ANZ Bank report revealed that CHF has become the top-performing currency among the G10 currencies.

USD/CHF continues to retrace the gains for the second consecutive day post ending a winning streak that began on September 19. The spot price trades around 0.9130 during the Asian session on Friday. The USD/CHF pair is under pressure after the moderate economic data from the United States (US).

US GDP kept consistent at 2.1% as expected. Initial Jobless Claims for the week ending on September 22, improved to 204K from the 202K prior, falling short of the 215K expected.

US Pending Home Sales showed a decline of 7.1%, exceeding the market expectation of a 0.8% fall, swinging from the 0.9% rise previously.

The US Dollar Index (DXY) extends losses on the second day after the moderate datasets from the United States (US), trading lower around 106.00 by the press time. However, the improved US yields could put a cap on the losses of the US Dollar (USD).

The yield on the 10-year US Treasury bond retraces the recent losses, standing at 4.60% at the time of writing.

Chicago Fed President Austan Goolsbee expressed confidence that the Fed will bring inflation back to its target. Goolsbee also emphasized the unique chance to achieve this without a recession, indicating the US Federal Reserve’s (Fed) commitment to managing inflation while sustaining economic growth.

Richmond Fed President Thomas Barkin stated that recent inflation data has been positive but highlighted that it's too early to predict the future course of monetary policy.

Traders await the US Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation, which is due on Friday. The annual rate is expected to reduce from 4.2% to 3.9%.

On the Swiss front, investors will likely watch Real Retail Sales for August to be released later in the day.

The Swiss Franc (CHF) is experiencing upward support, which could be attributed to a recent analysis by economists at ANZ Bank. Their analysis has highlighted that the CHF has become the top-performing currency among the G10 currencies in relation to the Greenback.