USD/CHF aims to continue a five-day winning streak, trades near 0.9030
- USD/CHF continues to move on an upward trajectory despite the tepid US Dollar.
- The escalation of the Israel-Hamas war could provide support for the safe-haven Swiss Franc.
- Downbeat US Core PCE Price Index (YoY) weighed on the Greenback.
- The rebound in 10-year US Bond yield could underpin the buck.
USD/CHF attempts to continue the winning streak that began on Tuesday, treading waters near 0.9030 during the Asian session on Monday. The USD/CHF pair receives upward support despite the lukewarm performance of the US Dollar (USD).
The Greenback faces a barrier as the market expects that interest rates will likely remain consistent at 5.5% by the US Federal Reserve (Fed) in the upcoming meeting on Wednesday.
Additionally, the US Core Personal Consumption Expenditures Price Index (YoY) eased at 3.7% in September compared to the 3.8% readings from August, which might limit advances of the USD/CHF pair. However, the monthly data showed an increase, printed 0.3% readings as anticipated compared to the previous figure of 0.1% but failed to boost the USD.
The escalation of the Middle-East conflict could provide support for the safe-haven Swiss Franc (CHF) against the USD. Israel has expanded the ground operations in Gaza and attacked multiple Hamas sites.
The US Dollar Index (DXY) appears to be maintaining a subdued presence, with the decline in US Treasury yields on Friday. However, the 10-year US Bond yield shows indications of a rebound, standing at 4.87% by the press time.
On Wednesday, the downbeat ZEW Survey Expectations report showed that Switzerland's business conditions and labor market declined to 37.8 in October, from the previous decline of 27.6.
Investors will focus on the US ADP Employment Change, ISM Manufacturing PMI for October during the week. On the Swiss docket, Real Retail Sales (YoY) will be eyed on Tuesday.
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
