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Source: Newsmaker.id
The USD/CHF pair remained stable around 0.8190 during Tuesday’s (Nov 10) trading session, following a slight decline in the previous session. The dollar’s movement has been somewhat constrained as demand for safe-haven assets eases, amid growing optimism regarding diplomatic progress between Washington and Tehran. A drop in oil prices to their lowest level since August has also helped alleviate inflationary pressures.
US President Donald Trump stated that further military action against Iran appears unnecessary, describing the conflict as having effectively come to an end from a military standpoint. Nevertheless, Trump reaffirmed the US's readiness to maintain regional stability if required. These developments have shifted market focus away from geopolitical risks and toward US economic data.
Investors are now primarily focused on the US Consumer Price Index (CPI) for October, scheduled for release on Tuesday. The market anticipates that headline inflation will rise to 3.9% year-on-year—up from 3.7%—while core inflation is projected to climb to 2.8% from 2.6%. The data will serve as a key indicator for the future direction of Federal Reserve policy.
Expectations for an interest rate hike have strengthened following recent Non-Farm Payroll (NFP) data, which indicated that the US labor market remains robust. Hawkish remarks from several Federal Reserve officials have pushed the probability of a rate hike in December to 84%, up from 76% the previous day. These conditions have provided some support for the dollar, though its gains remain limited.
Newsmaker Analysis: The USD/CHF pair is currently caught in a tug-of-war between expectations for a US interest rate hike and waning demand for safe-haven assets. UOB maintains the view that the pair could test the 0.8110 level, while 0.8205 serves as a significant resistance level. Consequently, the CPI results will act as a primary catalyst, likely determining whether the dollar regains strength or if the USD/CHF pair faces continued downward pressure. (srh)
Source: Newsmaker.id