The USD/CHF pair is trading in a narrow range around 0.7960 during Friday’s Asian session as investors await the release of the United States Consumer Price Index (CPI) data for September. The US Dollar (USD) remains steady, with the US Dollar Index (DXY) hovering near 99.00, consolidating after recent gains.
Markets Eye US CPI for Policy Clues
Economists expect both the headline and core CPI to rise by 3.1% year-on-year, compared to 2.9% previously. On a monthly basis, inflation is projected to increase by 0.4% for the headline figure and 0.3% for the core measure.
However, analysts suggest the data’s impact on the Federal Reserve’s (Fed) policy outlook could be limited, as recent comments from Fed officials highlight greater concern over labor market weakness than over inflation, which remains above the central bank’s 2% target.
Trade Talks and Global Sentiment in Focus
Beyond inflation, traders will monitor discussions between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng in Malaysia. The meeting aims to address tariff reductions and other trade barriers, which could influence global risk sentiment and the USD.
SNB Maintains Steady Policy Outlook
The Swiss Franc (CHF) remains stable following the Swiss National Bank (SNB)’s September meeting minutes released Thursday. Policymakers reiterated that current monetary conditions are appropriate, noting that inflation is unlikely to stay persistently negative. The SNB also assessed that US tariffs would have a limited impact on Switzerland’s economy.
Outlook
The USD/CHF pair is expected to stay range-bound in the near term as markets await direction from the US inflation data. A stronger-than-expected CPI print could lend support to the USD, while a softer reading might trigger renewed selling pressure on the Greenback.