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The USD/CHF currency pair fell to around 0.8655 during early European trading on Thursday. Continued safe-haven flows resulting from uncertainty surrounding the November 5 U.S. presidential election and tensions in the Middle East continue to support the Swiss franc (CHF).
U.S. economic data continues to show that the U.S. economy remains strong, supporting the prospect of the Federal Reserve (Fed) easing policy. This could cap the dollar’s downside in the near term. According to the Chicago Mercantile Exchange’s (CME) FedWatch Tool, the market is pricing in a roughly 96% chance of a 25 basis point rate cut.
Traders will be closely watching the U.S. personal consumption expenditures (PCE) price index due later on Thursday. On Friday, U.S. employment data will be in focus, including the non-farm payrolls report (NFP), unemployment rate and average hourly earnings.
The race between Republican Donald Trump and Democrat Kamala Harris remains tight ahead of the November 5 US presidential election. Ongoing geopolitical tensions in the Middle East and uncertainty related to the outcome of the US election are likely to boost the Swiss franc and act as temporary headwinds for USD/CHF.
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