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Source: Solid Gold Berjangka
The USD/CHF pair traded flat around 0.8180 on Tuesday (Nov 3), following a loss of earlier gains. The Swiss Franc found support ahead of the release of domestic inflation data; the monthly Consumer Price Index (CPI) for October is expected to remain at 0%, while annual inflation is projected to rise to 1.3% from 1.0%.
Previous Swiss economic data showed that real retail sales grew by 1.6% year-on-year in September, a slowdown from the 3.9% growth recorded in August. Conversely, the SVME manufacturing PMI climbed to 56.7 from 55.3, marking the eighth consecutive month of expansion.
From the U.S., the dollar is facing pressure ahead of the U.S. midterm elections. Political uncertainty has prompted a cautious stance among investors, while developments regarding the U.S.-Iran conflict are also drawing attention due to their potential impact on the inflation outlook and monetary policy.
The market is also preparing for the release of U.S. employment data later this week. This report is a key focus, as it will provide fresh insight into the state of the labor market and the future direction of Federal Reserve policy.
According to the CME FedWatch Tool, the market currently assigns a roughly 73% probability to a Federal Reserve interest rate hike in December, following the central bank's decision to hold rates steady in October. Future movements in both the U.S. dollar and the Swiss Franc will depend heavily on upcoming economic data and shifts in the monetary policies of both nations. (srh)
Source: Newsmaker.id