The USDCHF exchange rate has data on Wednesday with Swiss consumer prices.
USDCHF – Daily Chart
The USD v CHF pair has resistance at the 0.8100 level, and that creates a range down to the 0.7848 price level.
Swiss consumer prices will be released at 2:30 pm HKT on Wednesday, with markets expecting a 0.1% month-on-month rise.
That comes before overnight data on the U.S. economy, including ADP employment figures and the services PMI. Analysts will watch the employment market closely for any signs of job weakness that would boost the chances of a rate cut. The USD could test the top of the trading range if more jobs are created than expected.
Switzerland’s first GDP contraction in more than two years was driven by trade as tariffs hit pharmaceutical and chemicals exporters. Gross domestic product fell by 0.5% in the three months to the end of September. The decline compares to the growth of 0.2% in the second quarter.
“This needs to be seen in the context of recent volatility in foreign trade,” officials said. “Strong exports of chemical and pharmaceutical products, driven also by front-loading effects linked to US trade policy, gave way to a compensatory decline in recent months”.
The new data comes after a framework trade deal this month that cut levies on many goods to 15% from 39%. The lower tariffs are expected to start in early December and will begin to reverse recent economic pressures.
For U.S. jobs, markets are expecting to see a 10k addition, which is lower than last month’s 42k. A weaker number could secure a rate cut in December, but a more substantial number could lead to dollar strength.
The U.S. is hopeful that a deal with Russia and Ukraine is close, which could ease Swiss franc inflows if there is less appetite for its safe-haven currency.
