USD/CHF remains pressured towards 0.9250 amid cautious mood

• Rising inflation concerns continue to stress the swissie traders.  
• The cautious market mood aided the Swiss franc's safe-haven appeal, contributed to the drop.
• USD/CHF struggles around 0.9270, investors eye Swiss macro data.

The USD/CHF pair is dropping towards 0.9250, moving further away from the last October 12 high of 0.9300 level. The cross-country pair is trading around 0.9272, down 0.12%, during the Asian trading session on Thursday. It appears that the latest trend in the currency pair is led by marginal ease in the value of the US dollar. Also, the pullback in the US treasury yield is giving a much-needed boost to the USD/CHF bears. 

Like its peers, Switzerland is also not cushioned enough to side-line the effects of inflation. Hence, the Swiss National Bank (SNB) is putting efforts to curb the rising inflation. It is worth mentioning that the inflation rate rose by 0.3% to 0.2% in October, the highest since August 2018. Now, as the Swiss economy regains its momentum, prices are beginning to catch up.

Despite the vaccination campaign in process, the uncertainty led by the variants of the COVID-19 virus continues to stress the policymakers and market participants. In addition to this, with European Central Bank (ECB), maintaining its transitory stance on the pandemic-led inflation will keep the pair under pressure.

The rate markets have been estimating the likelihood of a rate hike from the Fed by July 2022 amid worries of rising inflation. The US dollar's recent journey has halted on Wednesday, with the DXY falling back to the 95.80s. 

In the meantime, concerns about surging consumers have provided a headwind dampened investors' appetite for perceived riskier assets. The dilly-dally mood of investors around equity markets further solidifies concern. It has propelled the Swiss franc's safe-haven demand and further contributed to the USD/CHF pair's intraday downfall.

The broader market risk sentiment would play a key role for USD/CHF traders. Investors will also eye for Switzerland Industrial production YoY data, Import/Export MoM numbers and Trade balance figure for the month of October. Also, US Initial Jobless Claims data and ISM Philadelphia Fed Manufacturing Survey for November to find impetus.

USD/CHF technical levels