Ella 
In early Asian trading on Friday, USD/CHF fluctuated within a narrow range around the 0.8821-0.8836 area. Markets turned cautious ahead of key U.S. and Swiss data. As of press time, USD/CHF was trading at 0.8833, unchanged on the day.
Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback’s value against six other major currencies, held above 103.60, still in a six-week-old uptrend. U.S. Treasury yields fell again on Friday. The 10-year Treasury yield hit a two-week low of 4.07% before rebounding to 4.10
Data released on Thursday showed that the U.S. core personal consumption expenditures price index rose to 4.2% in July from the previous reading of 4.1%, in line with expectations. Additionally, U.S. initial jobless claims fell to 228,000, below consensus expectations of 232,000. That number hit a four-week low, while continuing claims were at a six-week high. Federal Reserve Chairman Jerome Powell said at the Jackson Hole Symposium that the possibility of further interest rate hikes will depend on newly released economic data, so the mixed economic data in the United States poses a challenge to the Federal Reserve to maintain higher interest rates for longer.
On the other hand, the Swiss Federal Statistics Office reported on Thursday that real retail sales in Switzerland were -2.2% annualized in July, compared with 1.8% in the previous month. Earlier this week, the August KOF leading indicator was at 91.1, down from the previous reading of 92.01 and down from 91.5. Finally, the July ZEW Expectations Survey fell to -38.6 from -32.6 the previous month, below expectations of -31.3.
Renewed tensions over the U.S.-China trade war and worries about China’s debt crisis could benefit the traditional safe-haven currency, the Swiss franc. On Wednesday, Country Garden, China’s largest private real estate developer, issued an announcement that it would default if its financial performance continues to deteriorate.
Looking ahead, ahead of the closely watched U.S. non-farm payrolls data, traders will take their cue from Switzerland’s August consumer price index (CPI). The U.S. economy is expected to create 170,000 jobs in August. Additionally, the unemployment rate and ISM manufacturing PMI will be released later on Friday. These data will provide clear direction for the USD/CHF pair.
