Anna 
USD/CHF has recently taken on a negative bias, reversing its upward movement, and is currently trading lower at approximately 0.9060 during early European trading on Friday. The Swiss franc, regarded as a safe-haven asset, has gained buying support due to heightened geopolitical tensions in the Middle East.
Despite the decline in USD/CHF on Thursday, the pair bounced back following encouraging U.S. economic data. The Consumer Price Index (CPI) in September exceeded expectations, showing a year-on-year growth rate of 3.7%, slightly above the predicted 3.6%. Initial jobless claims for the week ended October 6 also inched up by 209,000, just below the anticipated 210,000, indicating a modest easing trend.
Furthermore, data revealed a monthly surge in the U.S. producer price index (PPI) in September, rising from 2.0% to 2.2%. The core PPI reached 2.7%, surpassing the projected 2.3%. This robust U.S. economic data has reignited hawkish sentiments regarding the Federal Reserve’s interest rate path, which could lend support to the USD/CHF pair.
Despite this, the U.S. dollar index (DXY) was trading lower, moving away from one-week lows, influenced by a drop in U.S. Treasury yields, with the 10-year U.S. Treasury yield at 4.65%, down 0.91% at the time of reporting.
Meanwhile, in Switzerland, producer and import prices experienced a 1.0% year-on-year decrease in September, compared to the previous 0.8% drop. On a monthly basis, data showed a 0.1% decline, in contrast to a 0.8% decrease in August.
As military conflicts in the Middle East heightened, the Swiss franc attracted buying support due to its status as a safe-haven currency during geopolitical uncertainties.
Investors will closely watch the release of the U.S. Michigan Consumer Confidence Index on Friday. This index serves as a significant gauge of consumer confidence and offers insights into broader economic sentiment, potentially influencing trading decisions in USD/CHF.
The article highlights the recent performance of USD/CHF, focusing on economic data and geopolitical factors influencing the currency pair. It also underscores the potential impact of the U.S. Michigan Consumer Confidence Index on USD/CHF trading.
