CHF pares losses versus USD despite a 0.2% daily gain in the pair, following stronger-than-expected Swiss economic sentiment data.
The Swiss Franc trimmed earlier losses against the US Dollar on Wednesday, with the USD/CHF pair retreating below 0.8930 after hitting session highs near 0.8940. The move followed the release of the Swiss ZEW Economic Expectations Index, which rose to 12.1 in August from 10.0 in July, marking its highest level since November 2023.
The improvement in Swiss economic sentiment contrasted with broader market focus on US inflation data. The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, is expected to show persistent price pressures, reinforcing expectations for further rate hikes. Analysts anticipate a stable Dollar ahead of the release, with a modest 0.2% month-on-month core PCE print likely to limit volatility.
Oil prices fell roughly 8% from last week’s highs amid diplomatic efforts to reopen the Strait of Hormuz, easing safe-haven demand for the Dollar. The softer crude backdrop contributed to the Franc’s partial recovery despite the USD’s broader strength.