The USD/CHF pair traded in a narrow range near 0.7960 during the late Asian session on Friday, as the Swiss franc held steady while the US dollar (USD) consolidated ahead of the delayed release of the United States Consumer Price Index (CPI) report. At the time of writing, the US Dollar Index (DXY) which measures the greenback’s performance against a basket of six major currencies remains within Thursday’s trading range around 99.00.
US CPI in focus amid cautious sentiment
Markets are closely watching September’s US CPI report, which is expected to show headline inflation rising at an annual rate of 3.1%, up from 2.9% previously. Core CPI, which excludes food and energy, is forecast to remain steady at 3.1% year-over-year. On a monthly basis, headline and core CPI are estimated to have increased by 0.4% and 0.3%, respectively.
However, analysts expect the inflation release to have a limited market impact, as recent Federal Reserve (Fed) commentary suggests policymakers are now more concerned about a cooling labor market than inflation, which remains moderately above the central bank’s 2% target.
US-China trade discussions also in focus
Investors are also monitoring ongoing trade negotiations between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng in Malaysia. The talks are expected to address the reduction of tariffs and non-tariff barriers, with both sides aiming to promote fair trade practices and improve bilateral economic relations.
Swiss franc steady as SNB holds policy course
The Swiss franc (CHF) remained largely unchanged following the release of the Swiss National Bank (SNB) minutes from its September meeting. Policymakers reiterated that current monetary conditions remain appropriate and that no additional policy expansion is required. The SNB also noted that inflation is unlikely to stay persistently negative and downplayed potential spillover effects from US tariffs on the Swiss economy.
