Ella 
USD/CHF moved higher towards 0.8620 during the Asian session on Thursday. Although USD/CHF fell on Wednesday on disappointing U.S. jobs data, the pair recovered after Federal Reserve (FED) Chairman Jerome Powell dismissed the possibility of a rate cut at the upcoming March meeting. The Federal Reserve chose to maintain existing interest rates, in line with broad market expectations. Powell highlighted the persistence of rising inflation and highlighted strong growth in economic activity.
In addition, the Federal Open Market Committee (FOMC) does not expect to consider lowering the target range until it is more confident that inflation will continue to move towards its 2.0% target. Although inflation has slowed over the past year, it remains high. The statement made no mention of further strengthening the policy.
Thomas Jordan, chairman of the Swiss National Bank (SNB), spoke at the Business Correspondents’ Club on Tuesday. Inflation is expected to rise due to a value-added tax (VAT) hike and higher electricity prices, but will remain below 2.0%, he said. This is the baseline scenario, with forecasts for this year suggesting that average inflation will be below the 2.0% threshold. The Swiss National Bank is unanimously expected to deliver its first interest rate cut in September 2024.
Actual retail sales in Switzerland (year-on-year) fell 0.8% in December, compared with expectations for a 0.9% rise. Swiss consumer demand fell 1.5% in November. Gross domestic product (monthly) rose to 0.2% in November from a flat 0.0% previously, beating consensus expectations for a 0.1% rise. Traders will watch the S&P Global Manufacturing PMI and SVME PMI on Thursday.
