The USD/CHF pair drifts lower to around 0.8655 during the early European session on Thursday. Persistent safe-haven flows amid the uncertainty surrounding the US presidential election on November 5 and Middle East tensions continue to support the Swiss Franc (CHF).
The US continues to suggest that the US economy remains strong and supports prospects for less aggressive policy easing by the (Fed). This, in turn, might cap the downside for the Greenback in the near term. Markets are pricing in about 96% odds of a 25 basis points (bps) rate cut by the Fed, according to CME’s FedWatch Tool.
Traders will keep an eye on the US Personal Consumption Expenditure (PCE) Price Index, which is due later on Thursday. On Friday, the US employment data will take center stage, including the Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings.
The race between Republican Donald Trump and Democrat Kamala Harris remains close ahead of the November 5 US presidential election. The ongoing geopolitical tensions in the Middle East and the uncertainty related to the outcome of the US election could lift the CHF and act as a headwind for USD/CHF for the time being.More By This Author:GBP/USD Weakens Below 1.3000 As Traders Brace For US PCE Data GBP/USD Softens To Near 1.3000 Ahead Of UK Autumn Budget EUR/USD Trades With Mild Gains Above 1.0800, Eyes On US/Eurozone GDP, German Inflation Data
