Ella 
USD/CHF faces challenges for a third straight day, likely affected by improving risk appetite and signs of cooling in the labor market, as investors anticipate a dovish stance from the Federal Reserve (FED). USD/CHF was trading around 0.8830 during the Asian session on Tuesday.
Weak U.S. consumer prices in October prompted investors to reconsider the possibility of a rate hike at the Federal Reserve’s December meeting and consider the possibility of a rate cut in 2024. The latest report from the U.S. Bureau of Labor Statistics showed that U.S. monthly inflation fell to 3.2% in October, lower than the expected 3.3% and lower than the previous value of 3.7%. Core inflation fell to 4.0% (annual rate), slightly lower than the previous reading of 4.1%, and was expected to be flat.
Thomas Jordan, chairman of the Swiss National Bank (SNB), released hawkish remarks that would not rule out the possibility of more interest rate hikes in the future, which continued to support and underpin the strength of the Swiss franc. Additionally, Swiss industrial production (annual rate) exceeded expectations in the third quarter, reaching 2.0%, a significant improvement from -0.7% (revised -0.8%) in the previous quarter, Swiss Statistics reported. This positive trend is believed to be an inflationary factor and could weigh on USD/CHF.
On Tuesday, Switzerland will release import and export data, triggering market volatility. The focus shifted to key U.S. economic data such as existing home sales and the Chicago Fed National Activity Index. In addition, the minutes of the Federal Reserve meeting may provide the market with insight into the decision-making process of the Federal Reserve (FED) committee regarding interest rates.
