Anna 
The USD/CHF pair is poised to continue its winning streak that commenced on January 11, currently trading around 0.8680 during the Asian session on Monday. While the U.S. dollar (USD) may encounter downward pressure due to expectations of more substantial policy interest rate cuts by the U.S. Federal Reserve (Fed) in 2024 compared to other major central banks, hawkish comments from Fed members may offset potential losses.
San Francisco Fed President Mary Daly, in a speech on Friday, emphasized that the central bank still has work to do in achieving its inflation target of 2.0%. Additionally, Atlanta Fed President Raphael Bostic underscored flexibility in adjusting the outlook for rate cuts, highlighting the Fed’s commitment to a data-dependent approach.
On the other side, the Swiss franc (CHF) faces selling pressure following warnings from Swiss National Bank (SNB) Chairman Thomas Jordan about the currency’s appreciating trend. Speaking at the World Economic Forum (WEF) in Davos, Jordan expressed concerns that a stronger Swiss franc could impact the SNB’s ability to maintain inflation above zero in the domestic economy.
Swiss economic data showed a 1.1% year-on-year decline in production and import prices in December, slightly less than the previous 1.3%. Monthly data indicated a 0.6% decline, in line with expectations. With no new data on the Swiss economic calendar this week, traders are likely to await next week’s release of actual retail sales and the ZEW survey for further insights into the state of the Swiss economy. The USD/CHF pair remains in focus as central bank expectations and economic indicators influence its trajectory in the coming sessions.
