Ella 
USD/CHF was trading around 0.8480 in early trading in the European market on Wednesday, extending losses for the second consecutive trading day. Traders are taking a cautious approach ahead of key economic data due this week including the ISM services purchasing managers’ index and non-farm payrolls (NFP). The data could shed light on the potential size of the Fed’s rate cut expectations this month. In addition, the Federal Reserve’s Beige Book and JOLTS job vacancy data will be released later in the North American session.
The dollar fell as U.S. Treasury yields fell. The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against six major currencies, is trading around 101.60, with the 2-year and 10-year Treasury yields at 3.86% and 3.83% respectively at the time of writing.
However, the dollar found support following the release of the ISM Manufacturing Purchasing Managers Index. The index rose to 47.2 in August from 46.8 in July, below market expectations of 47.5. That marked the 21st contraction in U.S. factory activity in the past 22 months.
In Switzerland, data released by the Swiss Federal Statistics Office on Tuesday showed that the annual growth rate of the consumer price index fell to 1.1% in August, lower than the 1.3% in July and the market expectation of 1.2%. Meanwhile, the consumer price index (mom) was unchanged at 0.0%, compared with 0.1% in August.
In addition, Switzerland’s gross domestic product (GDP) increased by 0.7% in the second quarter, higher than market expectations and the 0.5% in the previous quarter. This marks the fastest economic expansion since the second quarter of 2022. Meanwhile, gross domestic product (GDP) grew at an annual rate of 1.8% in the second quarter, compared with a 0.6% increase previously.
