The US dollar fell to its lowest level against the Swiss franc since September, reaching 0.8832 amid a broader sell-off of the US currency and as markets gear up for the Thanksgiving holiday. The Federal Open Market Committee (FOMC) has recently reached a consensus on maintaining a restrictive monetary policy dependent on incoming data until inflation targets are closer to being met. This approach suggests a halt in rate hikes with potential reductions by mid-2024.
Switzerland's economic indicators have also influenced the currency pair's movements. On Tuesday, the country reported a decrease in its Trade Balance to CHF 4,600 million with imports dropping to CHF 18,491 million and exports declining to CHF 23,091 million (CHF1 = USD1.1307). The Swiss National Bank (SNB) Chairman Thomas Jordan did not rule out further monetary tightening, which has supported the Swiss franc's strength.
Investors are now looking ahead to key US economic reports for further guidance on the USD/CHF trajectory. Jobless Claims and Consumer Sentiment figures due today are expected to provide insights into the US economy's health, while Friday's S&P Global PMI data will be closely watched for additional market direction.
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