USD/CHF continues downtrend amid mixed Fed officials’ comments

• USD/CHF extends its downward trajectory for the third consecutive session
• Fed Governor Christopher Waller suggested that if the disinflation process persists, there might be no need to maintain high-interest rates.
• US and Swiss economic dockets, to deliver additional data to give direction on the USD/CHF.

The USD/CHF extends its downtrend for the third straight session, though bounced from daily lows reached at 0.8762. At the time of writing, the major is trading at 0.8783, down 0.22% sponsored by a Federal Reserve (Fed) official opening the door for rate cuts.

US Dollar struggles against the Swiss Franc as Fed officials' remarks on interest rates

Earlier, Fed’s Governor Christopher Waller said the current stance of monetary policy is sufficiently restrictive and added if the disinflation process continues for several months, he sees “no reason” to keep rates high. Contrarily, Fed Governor Michelle Bowman pushed back against Waller’s commentary, as she said it is “quite possible” the US central bank will need Fed policy rate at a higher level than pre-pandemic levels.

As of writing, New York Fed President John Williams finds encouraging that inflation is declining. HE said the Fed remains committed to getting inflation back to target.

Earlier, the US economic docket featured Home Prices for September, which rose 6.1% in 12 months to September, exceeding August’s 5.8%, blamed on lower mortgage rates after the US central bank decided to hold rates unchanged in back-to-back meetings. Furthermore, the Conference Board (CB) revealed the Consumer Confidence for October was revised to 99.1, though it climbed in November by 102, exceeding forecasts of 101.

On the Switzerland front, the ZEW Survey showed investors sentiment deterioration in October, which stood at -37.8. That data, alongside the release of Retail Sales for October on Thursday, would shed some light regarding the status of the economy is Switzerland.

USD/CHF Technical Levels