Anna 
USD/CHF is on an upward trajectory for the third consecutive day, reaching around 0.8650 during the Asian session on Thursday. The Swiss franc (CHF) is facing downward pressure as traders anticipate Swiss National Bank (SNB) Chairman Thomas Jordan’s speech at the World Economic Forum (WEF) in Davos on Thursday.
The SNB’s latest policy update in December maintained a neutral stance, pledging to adjust monetary policy as needed to maintain inflation within a range consistent with medium-term price stability. While recent indicators, such as a slight uptick in Swiss consumer prices and improved consumer demand, may influence the SNB’s decision, dovish data could prevent significant policy adjustments. The SNB remains prepared to actively engage in the foreign exchange market to support the Swiss franc.
The USD received support as expectations for the Federal Reserve’s initial interest rate cut in March diminished, bolstered by robust U.S. retail sales data. The probability of a rate cut dropped to 57%, down from over 70%, following the release of December’s retail sales figures, which exceeded market expectations.
Investors are closely monitoring U.S. housing data set to be released on Thursday for further insights into economic trends.
