Swiss Q3 GDP data looms as the USD/CHF slides down to around 0.8800
The USD/CHF pair dropped to around 0.8815 during the early European session on Friday, pressured by a broadly weaker US Dollar. Traders are awaiting Switzerland's third-quarter (Q3) Gross Domestic Product (GDP) report, set to be released later on Friday.
The US Dollar weakened as profit-taking took hold ahead of the long Thanksgiving weekend. Although US economic data has been encouraging, the US Federal Reserve's cautious stance could support the Greenback in the near term. The FOMC Minutes from Tuesday indicated that Fed officials expect interest rate cuts to occur gradually as inflation slows and the labor market remains robust.
Switzerland's Q3 GDP report is in focus on Friday, with the Swiss economy anticipated to grow by 0.4% quarter-on-quarter, down from 0.7% growth in Q2. Year-on-year, Swiss GDP is projected to remain stable at 1.8%. A weaker-than-expected result could undermine the Swiss Franc (CHF) and provide support for USD/CHF.
Meanwhile, tensions escalated in Ukraine on Thursday, as Russia launched its second major attack on Ukraine's energy infrastructure this month, causing widespread power outages. Any further intensification of the Russia-Ukraine conflict could strengthen safe-haven currencies like the CHF against the USD.
Paraphrasing text from "FX Streets" all rights reserved by the original author.