Anna 
During the early European trading hours on Friday, the USD/CHF pair advanced for the second consecutive day, hovering around 0.9080 as the Swiss Franc (CHF) weakened against the US Dollar (USD) following disappointing Industrial Production data from Swiss Statistics.
The report revealed a 3.1% decrease in Switzerland’s industrial output for the first quarter, extending the 0.5% downward revision from the prior quarter. This marks a continued slide in industrial activity for the second straight quarter, with a 1% quarterly drop in seasonally adjusted terms for Q1, compared to a revised 1.1% decline in the previous quarter.
On the USD side, the Federal Reserve (Fed) maintains a cautious outlook on inflation and potential rate adjustments in 2024, providing a supportive backdrop for the US Dollar and bolstering the USD/CHF pair.
Recent statements from Federal Reserve officials underscore this stance, with Atlanta Fed President Raphael Bostic emphasizing the need for patience in handling interest rates due to persistent pricing pressures in the US economy. Cleveland Fed President Loretta Mester echoed similar sentiments, suggesting a prolonged period may be required to confidently assess the inflation trajectory and advocating for a continued restrained approach by the Fed.
Despite the cautious Fed outlook, higher-than-expected Initial Jobless Claims reported by the US Department of Labor on Thursday have led to market speculations about a potential rate cut by the Fed in September. The data showed an increase in new jobless benefit claims to 222,000 for the week ending May 10, slightly surpassing the market consensus of 220,000 but remaining below the previous week’s figure of 232,000.
