The USD/CHF pair edges lower during the Asian session on Wednesday. The weaker US Dollar (USD) drag the USD/CHF lower to the lowest level since September. Markets remain subdued ahead of the Thanksgiving Day holiday in the United States later this week. The pair currently trades near 0.8832, down 0.06% on the day.
The minutes of the Federal Open Market Committee (FOMC) meeting released on Tuesday showed that all participants agreed policy decisions at every meeting would continue to be based on the totality of incoming information. Additionally, all participants agreed that monetary policy should remain restrictive until inflation sustainably moves toward the Committee's target. Market participants believe that the Federal Reserve (Fed) is done with the hiking cycle and expected rate cuts in the middle of 2024. This, in turn, exerts some selling pressure on the USD and acts as a headwind for the USD/CHF pair.
On the Swiss Franc front, the Swiss Trades Balance came in at 4,600M in October from 6,282M in the previous month. Imports dropped to 18,491M from seen in September while Exports declined to 23,091M versus 24,788 prior. Swiss National Bank (SNB) Chairman Thomas Jordan said that the additional rate hike cannot be ruled out in the future. These hawkish comments lift the Swiss Franc (CHF) against the USD.
Later on Wednesday, market participants will focus on the US weekly Jobless Claims Durable Goods Orders, and the University of Michigan Consumer Sentiment survey. The attention will shift to the US S&P Global PMI data on Friday. These figures could give a clear direction to the USD/CHF pair.
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