Market Analysis

During Thursday's European trading session, the USD/CHF pair remained stagnant around the 0.9000 mark, extending its recent downtrend. The US Dollar faced pressure amid speculations of multiple interest rate cuts by the Federal Reserve in 2024.

This bearish outlook on the Fed strengthened following the release of disappointing monthly Consumer Price Index (CPI) and Retail Sales figures from the US. April's CPI slowed to 0.3% month-on-month, below expectations, while Retail Sales stagnated, missing the projected 0.4% increase.

Minneapolis Federal Reserve Bank President Neel Kashkari suggested on Wednesday that the Fed should hold off on adjusting policy rates until they have a clearer picture of underlying inflation trends.

On the Swiss front, April's Producer and Import Prices (YoY) showed a 1.8% decline, a slight improvement from the previous month's 2.1% drop. Despite this, it marked the twelfth consecutive month of decline, albeit at a slower pace since December 2023.

Traders are now awaiting the release of Switzerland's first-quarter Industrial Production (YoY) data on Friday. This report will provide insights into the performance of various sectors, including manufacturing and factories, in Switzerland.

USDCHF

Paraphrasing text from "FX Street" all rights reserved by the original author.