USD/CHF gains ground near 0.9020 ahead of US PCE Inflation report for April. The US core PCE is projected to have risen steadily. Market sentiment is downside as China’s weak PMI data raises uncertainty over global demand outlook. The USD/CHF pairrebounds to near 0.9050 in Friday’s European session after discovering buying interest around 0.9020. The Swiss Franc asset finds cushion as the US Dollar manages to have a firm footing amid a cautious market mood.
The underlying inflation data will provide cues about whether the Fed will start reducing interest rates from their current levels in September. Currently, the CME FedWatch tool shows that traders are mixed about the likelihood of the central bank returning to the policy normalization process in September. Meanwhile, the Swiss Franc is slightly down against the US Dollar but performed strongly on Thursday after the release of the better-than-expected Swiss Q1 Gross Domestic Product data.