Anna 
During Friday’s European trading hours, the USD/CHF pair experienced a third consecutive session of losses, edging lower to approach the 0.8560 level. The decline was attributed to discouraging labor data from the United States (US), which weakened the US Dollar (USD) and acted as a headwind for the USD/CHF pair.
According to the Swiss Manufacturing Purchasing Managers Index (PMI) released by the Trade Association for Purchasing and Supply Management, production growth in Switzerland saw a slight improvement, reaching 43.1 in January, up from the previous reading of 43.0. However, this fell short of market expectations set at 44.5.
Recent economic events in Switzerland depicted a decline in Real Retail Sales and Consumer Demand, contrasting with a GDP rise that exceeded market consensus. Projections for the year indicate an average inflation below the 2% threshold, with expectations leaning towards the Swiss National Bank (SNB) implementing its first rate cut in September 2024.
Adding to the pressure on the US Dollar (USD) are subdued US Treasury yields, influenced by reports from New York Community Bancorp, revealing increased stress in its commercial real estate portfolio.
The USD faced further downward pressure following the release of mixed economic data from the United States (US) on Thursday. Initial Jobless Claims for the week ending on January 26 rose to 224K, surpassing both the previous increase of 215K and the expected figure of 212K.
On a positive note, the ISM Manufacturing PMI improved, climbing to 49.1 from the prior reading of 47.1, exceeding the anticipated figure of 47.0 in January. Additional labor data, including US Average Hourly Earnings and Nonfarm Payrolls (NFP), is scheduled for release on Friday, contributing to the overall sentiment surrounding the USD/CHF pair.
