USD/CHF Slips Amid Economic Data Anticipation and IMF Outlook
The USD/CHF pair saw a reversal of its recent gains, trading near 0.8490 during Wednesday’s Asian session. The decline follows a risk-off sentiment shift, with investors focusing on the US Dollar (USD) as they await significant economic data releases from the US.
The US S&P Global Manufacturing PMI registered at 47.9, below the expected 48.2, suggesting a manufacturing slowdown. Investors now anticipate Wednesday’s data, including December’s ISM Manufacturing PMI, November’s JOLTS Job Openings, and the Federal Open Market Committee (FOMC) Minutes. The FOMC Minutes are particularly vital after Fed Chair Powell’s recent comments on potential rate cuts.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva’s moderate outlook for the US economy suggests a less aggressive monetary policy stance in the future, potentially impacting the USD. Her optimism, paired with predictions of interest rate moderation in 2024 due to decreasing inflation, contrasts with previous hawkish views, potentially leading to a softer USD trajectory.
Swiss economic indicators present a mixed picture. The Swiss ZEW Survey – Expectations showed a decline, reflecting dampened economic sentiment. In contrast, the KOF Swiss Leading Indicator outperformed expectations, providing a more positive outlook. The Swiss National Bank (SNB) is expected to continue its interventions in the foreign exchange market to bolster the Swiss Franc (CHF).
Investors also await the SVME Manufacturing PMI data release for further insights into the Swiss economy’s direction.
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