Ella 
USD/CHF consolidated after rising slightly to around 0.8840 in Asia on Friday. USD/CHF is likely to weaken as market participants bet that the Federal Reserve will not raise interest rates further, as downward pressure on the U.S. dollar continues.
The Swiss franc came under downward pressure after the Swiss National Bank announced that the central bank’s foreign exchange reserves fell to a seven-year low of 657 million Swiss francs. This heralds a gradual reduction of the SNB’s foreign exchange reserves from a peak of CHF 950 billion in 2022.
The U.S. Dollar Index (DXY), which measures the performance of the U.S. dollar (USD) against six other major currencies, was consolidating around 103.70, with negative sentiment ahead of Friday’s U.S. S&P Global Purchasing Managers Index (PMI) data. The services PMI is expected to drop slightly from 50.6 to 50.4, and the manufacturing PMI is expected to drop slightly from 50.0 to 49.8. Investors will be watching the data closely to gain insight into the performance of key sectors of the U.S. economy.
U.S. Treasury yields improved during the Asian session on Friday after the U.S. Thanksgiving holiday, trying to push the dollar into positive territory. At press time, U.S. 10-year and 2-year bond coupon yields remained at 4.46% and 4.94%, respectively.
