USD/CHF settles below 3-week high, posts weekly gain
The USD/CHF currency pair settled below recent high of 0.8064, its strongest level since June 25th, in the wake of solid US macro data.US retail sales growth was stronger than expected in June, 0.6% m
The USD/CHF currency pair settled below recent high of 0.8064, its strongest level since June 25th, in the wake of solid US macro data.
US retail sales growth was stronger than expected in June, 0.6% month-over-month, while initial jobless claims dropped more than expected in the week ended July 12th.
Annual CPI inflation accelerated to 2.7% in June, or the highest rate since February, from 2.4% in May.
And, annual core inflation picked up to 2.9% in June from 2.8% in May.
The data suggested tariffs were beginning to have an impact on inflation and likely prompting the Federal Reserve to leave borrowing costs on hold until September.
Markets are now pricing in about 45 basis points of interest rate cuts by the Fed by year-end.
Meanwhile, the latest data out of Switzerland showed the nation’s trade surplus had widened to CHF 4.3 billion in June from a revised up CHF 2.2 billion in May.
Total exports went up 8.6% month-on-month to CHF 23 billion.
Market players also continued to keep a close eye on trade negotiations.
The USD/CHF currency pair settled 0.32% lower at 0.8011 on Friday.
The major Forex pair gained 0.65% for the week.
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