USD/CHF retreats as focus shifts to next week’s CPI data

The USD/CHF bulls take a breather around 0.9220, after posting the biggest daily jump in one week, as traders await the key US data amid mixed interest rate-linked feelings.

The Swiss Franc rallied the previous day amid the market’s rush toward the US dollar amid fears of recession. However, traders rethink about the Fed’s next moves in addition to awaited US data.

The US Weekly Initial Jobless Claims reading on Thursday and comments by Fed’s Thomas Barkin seemed to have weighed on the US dollar during the initial Thursday. Also exerting downside pressure on the dollar was the optimism surrounding China and likely easing in the Sino-American tussles.

Preliminary readings of US Michigan Consumer Sentiment Index, 5-year inflation expectations eyed ahead of next week’s US CPI.

The US Weekly Initial Jobless Claims rose to 196K versus 190K expected and 183K prior. The advance number for seasonally adjusted insured unemployment during the week ending January 28 was 1,688,000, an increase of 38,000 from the previous week’s revised level,” said the US Department of Labour.

Fed’s Barkin appeared too dovish while suggesting rate cuts as he said that it would make sense for the Fed to steer “more deliberately” from here due to lagged effects of policy.