Stronger US retail sales and producer inflation data reduce expectations for near-term Federal Reserve rate cuts, lifting the Dollar.
The USD/CHF pair climbed 0.15% to near 0.7830 on Thursday, driven by robust US economic data that bolstered the Dollar. Retail sales in April rose 0.5%, matching forecasts, while March’s growth was revised to 1.6%, underscoring resilient consumer demand amid high borrowing costs.
Producer prices surged 1.4% month-over-month in April, pushing annual PPI to 6%, the highest in over three years. The data reinforced expectations that US inflation remains persistent, prompting investors to scale back bets on early Fed easing.
Markets now anticipate rates could stay elevated longer, with some pricing in potential further tightening. US Treasury yields initially rose before easing slightly, reflecting shifting monetary policy expectations.