Swiss Franc remains stronger following SVME PMI data
USD/CHF depreciates after posting minor gains in the previous trading day, hovering around 0.8220 during the European hours on Monday. The pair remains subdued as the Swiss Franc (CHF) holds gains following the release of domestic economic data.
SVME - Purchasing Managers' Index rose to 56.7 in October, against expectations of remaining at 55.3. Swiss Real Retail Sales came in at 1.6% year-over-year growth in September, from the previous 3.9% (revised from 3.2%). Market expectations were 3%.
The USD/CHF pair depreciates as the US Dollar (USD) loses ground amid easing safe-haven demand, driven by ongoing diplomatic efforts to end the Middle East conflict despite lingering fears of renewed US military action against Iran. Qatari and Iranian officials continued discussions for a third consecutive day, working toward an agreement to end the war ahead of the US midterm elections.
However, the US Dollar could regain ground on rising expectations for a Federal Reserve rate hike. According to the CME FedWatch Tool, traders are pricing in roughly a 75% chance of a December rate increase, boosted by recent US macroeconomic data pointing to economic resilience and persistent inflation.
Traders await key upcoming events, including the US Nonfarm Payrolls (NFP) report and ISM manufacturing and services data. Remarks from several Federal Reserve officials scheduled throughout the week are also expected to offer further guidance on the central bank's monetary policy path.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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