USD/CHF eases below 0.9150 as investors anticipate the release of US CPI data.

USD/CHF Slides to 0.9120 Amid Anticipation of US CPI Data Release

The USD/CHF pair hovers around 0.9120 with a slight bearish tone during the early European session on Wednesday. Traders remain cautious as markets await the release of the US Consumer Price Index (CPI) inflation data for December, set to be unveiled later in the day.

Tuesday’s softer-than-expected US Producer Price Index (PPI) report has exerted pressure on the US Dollar (USD) against the Swiss Franc (CHF). Market focus now shifts to the CPI report, with analysts suggesting its impact on the USD may be short-lived. Attention is also on potential policy shifts, including the possibility of tariffs on imported goods under President-elect Donald Trump’s administration.

“Markets are closely watching the incoming administration’s policies and their effects on inflation,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.

On the Swiss Franc front, geopolitical developments continue to influence market sentiment. Palestinians and Israelis are cautiously optimistic about a potential ceasefire agreement in the Gaza Strip after 15 months of conflict. Meanwhile, heightened tensions in the Middle East and the ongoing Russia-Ukraine conflict are fueling safe-haven demand, which could strengthen the CHF further.

Stay updated on the latest market trends as the global economic and geopolitical landscape evolves.