Ella 
USD/CHF attempted to rebound from two-month lows, halting four consecutive losses. The pair rose slightly to around 0.8890 on Thursday in Asia.
The U.S. dollar index rebounded on Wednesday following the release of U.S. economic data. U.S. retail sales fell 0.1% in October, compared with expectations for a 0.3% decline. However, the producer price index unexpectedly fell by 0.5%, compared with expected growth of 0.1%, and the annual PPI rate dropped from 2.2% to 1.3%.
The retail sales data may provide a warning to the Federal Reserve that progress on inflation may be at risk. That could signal further tightening, with the Fed’s cautious stance creating uncertainty despite recent data showing a fall in inflation. USD/CHF was supported by uncertainty over the Fed’s policy decision at its December meeting.
Additionally, USD/CHF has recovered on the back of rising U.S. Treasury yields, with the 2-year yield at 4.90% and the 10-year yield at 4.50% at press time.
Swiss National Bank (SNB) Chairman Thomas Jordan mentioned in an interview with a local TV station that he would not rule out the possibility of further interest rate increases in the future. This could provide upside support for the Swiss franc (CHF) in the first few sessions.
Focus on Switzerland’s third-quarter industrial output on Friday for clues on whether the Swiss National Bank will raise interest rates at its December meeting. However, the number of initial jobless claims in the United States last week will be released during the North American session, which may provide further impetus for the dollar’s job market conditions.
