The USD/CHF pair weakened to the 0.8030 area at the start of Friday's European session. The US dollar was pressured by strong speculation of a Fed rate cut next week and rumors that White House economic adviser Kevin Hassett could replace Jerome Powell as Federal Reserve Chair. The market now prices nearly an 85% chance of a 25 bps rate cut at the December meeting, adding to selling pressure on the greenback. Investors are also awaiting the release of US September PCE inflation data, which could provide important clues to the Fed's future policy direction.

In Switzerland, CPI inflation fell to 0% in November, while core inflation hit a four-year low. This weaker-than-expected data supports the view that the Swiss National Bank (SNB) will maintain its loose monetary policy. In theory, this could lead to a weakening of the Swiss franc in the medium term, supporting USD/CHF. However, for now, the combination of Fed rate cut expectations and the possibility of a more dovish new chairman is making pressure on the US dollar more dominant than Swiss factors. (az)

Source: Newsmaker.id