USD/CHF consolidates near 0.8750 with a negative tone ahead of Swiss GDP data

• USD/CHF consolidates ahead of Swiss GDP data.
• Swiss Gross Domestic Product is expected to remain consistent at 0.5%.
• Investors await Fed Chair Jerome Powell’s speech on Friday.

USD/CHF hovers near 0.8750 during the Asian session on Friday, retracing its gains registered on Thursday. The decline in the US Dollar (USD) weighs on the USD/CHF pair following the likelihood of ending the interest rate hike by the US Federal Reserve (Fed).

Swiss Real Retail Sales on Thursday, declined by 0.1% compared to the expected growth of 0.2% in October. The downbeat Swiss consumer demand might have put pressure on the Swiss Franc (CHF). Moreover, Gross Domestic Product (GDP) data will be eyed on Friday.

However, Swiss National Bank (SNB) Chairman Thomas Jordan has acknowledged earlier the possibility of future interest rate hikes, contributing support to underpinning the CHF.

The US Dollar Index (DXY) faces a challenge as the US Bond yields react subdued, countering recent gains. The DXY trades lower at 103.30 at the time of writing. The mixed US data might have helped the Greenback to gain ground.

Additionally, the US Core Personal Consumption Expenditures Price Index (PCE) showed a YoY easing to 3.5% in October from the previous reading of 3.7%. The YoY Core PCE Price Index saw a decline of 0.2% from the prior 0.3%. Moreover, Initial Jobless Claims for the week ending November 24 totaled 218K, slightly below the expected 220K.

Investors await the release of the US ISM Manufacturing PMI for November, and they also have their eyes on the speech by US Federal Reserve (Fed) Chairman Jerome Powell scheduled for Friday. These events are likely to impact market dynamics and influence the trajectory of the US Dollar.