The Swiss Franc has experienced a slight dip, trading at approximately 0.85 per USD, following the release of Swiss inflation data which indicated a decline to 0.8%. This figure fell short of the market's expectations, which anticipated an increase to 1.1%. The lower Consumer Price Index (CPI) has intensified expectations that policymakers may advocate for a 50 basis point rate cut during the upcoming meeting of the Swiss National Bank (SNB) in December. This follows the SNB's previous decision to lower the key interest rate by 25 basis points for the third consecutive time.
In contrast, the US dollar is on the rise, reaching a new three-week high, supported by robust private employment data from the US, which strengthens the belief that the Federal Reserve may refrain from implementing drastic rate cuts.
As of October 7, the USDCHF pair saw a decrease of 0.0024, or 0.28%, settling at 0.8557 compared to 0.8581 in the previous trading session. Analysts predict that the Swiss Franc will trade at 0.86 by the end of this quarter, with projections pointing to a value of 0.89 within the next twelve months.