Ella 
In early Asian trading on Wednesday, USD/CHF fell below the 0.8900 mark for the second consecutive day. At press time, USD/CHF was trading at 0.8895, up 0.01% on the day. Meanwhile, the U.S. dollar index (DXY), which measures the greenback’s value against six other major currencies, recovered a nine-month high of 104.80, supported by rising U.S. Treasury yields.
Turning to U.S. data, the U.S. Commerce Department said on Tuesday that U.S. factory orders fell to the lowest level since mid-2020 in July. In July, the monthly rate of US factory orders was -2.1%, which was 2.3% in the previous month, which was lower than the -0.1% expected by the market. Last week’s high-profile data showed that the number of non-farm payrolls (NFP) in the United States in August was 187,000, higher than the previous value of 157,000, and also higher than the expected 170,000.
According to Bloomberg’s Worldwide Interest Rate Implied Probability (WIRP) tool, market participants expect the Fed to raise interest rates by 25 basis points (bps) for the full year, taking rates to 5.75%. In addition, Federal Reserve (Fed) Governor Christopher Waller (Christopher Waller) said that the Fed has more room to raise interest rates. Waller also said that economic data will determine whether the Fed needs to raise interest rates again, and whether the Fed has completed raising interest rates. The hawkish comments boosted the dollar against its rivals.
In addition, the Swiss economy remained stagnant in the second quarter. Data released by the Swiss Statistics Office on Monday showed that Switzerland’s gross domestic product (GDP) quarterly rate fell to 0.0% in the second quarter, lower than the market expectation of 0.1% and the previous value of 0.3%. Swiss GDP came in at an annual rate of 0.5% in the second quarter, in line with expectations. A weaker-than-expected Swiss economy weighed on USD/CHF.
