The USD/CHF pair continued its decline, trading around 0.9000 during the European session on Thursday. This was mainly due to the weakening US Dollar as the market anticipated multiple rate cuts by the Federal Reserve in 2024.
The bearish sentiment towards the Fed was reinforced by the release of disappointing data from the US, including lower-than-expected Consumer Price Index (CPI) and Retail Sales figures for April. The CPI slowed to 0.3% month-over-month, below the expected 0.4%, while Retail Sales remained flat, missing the projected 0.4% increase.
In contrast, Neel Kashkari, President of the Minneapolis Federal Reserve Bank, suggested that the Fed should keep policy rates unchanged for a longer period to assess the trend in inflation.
Meanwhile, in Switzerland, Producer and Import Prices saw a 1.8% decline in April, showing a slight improvement from the previous month. This marked the twelfth consecutive month of decline, albeit at a slower pace compared to previous months.
Traders are now looking forward to the release of Industrial Production data for the first quarter on Friday. This report will provide valuable insights into the performance of manufacturing and production sectors in Switzerland, offering clues about the country’s economic health.