USD/CHF retraces recent losses, hovers around 0.9000

• USD/CHF moves sideways as markets adopt a cautious stance.
• Investors focus on Fed Chair Powell's involvement in a panel discussion, seeking fresh cues.
• US Dollar experiences lukewarm response despite dovish remarks from Fed officials.

USD/CHF recovers recent losses, hovering near the 0.9000 psychological level during the European session on Thursday. The USD/CHF pair moves sideways as the market shifts confidence due to US Federal Reserve (Fed) officials’ showing resistance against lowering interest rates.

During the US Central Bank statistics conference on Wednesday, Fed Chair Jerome Powell opted not to provide commentary on monetary policy. The attention of investors now turns to Powell's involvement in a panel discussion later today, where he could share insights and perspectives on "Monetary Challenges in a Global Economy."

The US Dollar Index (DXY) treads water near 105.50, amid US Treasury yields take their toll. The yield on a 10-year US bond hovers around 4.49% on Thursday. Moreover, Fed officials have expressed their reluctance to entertain the notion of lowering interest rates. However, despite this stance, the Greenback encounters challenges in the market.

Fed Governor Michelle Bowman has suggested that the central bank is contemplating future increases in short-term interest rates, introducing an element of uncertainty. Conversely, Neil Kashkari, President of the Minnesota Fed, remains skeptical about whether the central bank has raised rates sufficiently. He highlights the resilience of the economy as a crucial factor shaping his perspective on monetary policy.

Switzerland's seasonally adjusted Unemployment Rate (MoM) remained steady at 2.1% in October, according to data released by the State Secretariat for Economic Affairs (SECO). Additionally, the contained conflict between Israel and Hamas has improved market sentiment, potentially impacting the safe-haven status of the Swiss Franc (CHF).