Ella 
During the early European trading hours on Thursday, the USD/CHF pair made advances, nearing the 0.9060 mark. The uptick in the US Dollar (USD) against the Swiss Franc (CHF) is attributed to prevailing risk aversion sentiments, particularly ahead of key economic data releases from the United States (US).
Traders are exercising caution in anticipation of crucial economic indicators, notably the Gross Domestic Product Annualized and Initial Jobless Claims data, scheduled for release on Thursday. Additionally, market participants are eyeing the forthcoming release of Personal Consumption Expenditures on Friday.
The US Dollar Index (DXY) surged near 104.50, supported by elevated 2-year and 10-year yields on US coupon bonds, which stood at 4.61% and 4.20%, respectively, at the time of reporting. However, uncertainty prevails in the market, with conflicting perspectives among members of the Federal Open Market Committee (FOMC) regarding monetary policy easing.
Federal Reserve Board Governor Christopher Waller advocates for a cautious approach to rate cuts, citing persistent inflation data. Similarly, Atlanta Fed President Raphael Bostic shares this sentiment, projecting only one rate cut this year and cautioning against premature reductions that could exacerbate economic disruptions.
In related developments, the ZEW Survey – Expectations saw a rise of 1.3 points in March, reaching 11.5, the highest level since October 2021. This uptick was bolstered by the Swiss National Bank’s decision to lower its interest rate by 25 basis points to 1.5%. Consequently, the Swiss Franc (CHF) weakened further year-to-date, with the SNB’s action likely to undermine the currency, making it the first G10 central bank to implement such a rate cut.
Looking forward, market attention is focused on the Swiss Leading Indicator, set to be released on Thursday by the KOF Swiss Economic Institute. Expectations indicate a slight uptick to 102.0 in March, compared to the previous reading of 101.6, which could offer insights into the Swiss economic outlook amidst prevailing global uncertainties.
