USD/CHF holds a position above 0.9000 post intraday losses, US inflation eyed

• USD/CHF loses ground ahead of US inflation data release on Tuesday.
• US Dollar faces challenges despite Fed Chair Powell’s hawkish tone at IMF event.
• Swiss Franc could receive upward support as SNB is expected to increase by a 25 basis points hike in the December meeting.

USD/CHF extends losses for the second successive session, trading lower near 0.9010 during the early European hours on Monday. The USD/CHF pair grapples with challenges, seemingly unaffected by the hawkish remarks from Federal Reserve (Fed) Chair Jerome Powell at the International Monetary Fund (IMF) event on Thursday. Powell stated that current interest rates not doing enough to bring inflation down to the target, which has left the USD in a state of uncertainty.

US Dollar (USD) faced pressure following the release of downbeat preliminary US Michigan Consumer Sentiment data on Friday, which showed a decline to 60.4 in November from the previous figures of 63.8. The downward pressure is further intensified by the lackluster performance of US Treasury yields, which stand at 4.63% for the 10-year US bond coupon by the press time. Traders will likely focus on US inflation data for October scheduled to be released on Tuesday, seeking fresh cues on US economic scenario.

Later in the month, market participants are eagerly awaiting the Swiss ZEW Survey – Expectations and Real Retail Sales, which could provide insights into whether the Swiss National Bank (SNB) will consider an interest rate increase in the December meeting. Expectations seem to be leaning towards a 25 basis points hike. All eyes will be on Chairman Thomas Jordan as he addresses the global risks, uncertainty, and volatility during the conference on Tuesday which will held in Zurich.