The USDCHF pair remained quiet in the initial Asian trading hours on Wednesday. The pair failed to maintain the previous session’s upside and now hovers around 0.9200.
The US 10-year benchmark yields fell to 1.28% with a 3.05% loss following the softer US Consumer Price Index (CPI) data, which lessened fears that the Fed would have to start tapering earlier.
The US Consumer Price Index (CPI), discounting the volatile food and energy components, rose 0.1% in August. Inflation grew 0.3% in the previous month as compared to 0.5% in July. The readings are aligned with the Fed’s view of inflation as transitory and raised doubts about tapering this year.
On the other side, the Swiss franc holds some ground on its safe-haven status amidst risk aversion on the rapid spread of the delta variant of the covid-19 and its impact on global economic recovery.
Additionally, strong economic data fueled the upside in the franc as Swiss producer and import prices jumped 4.4% in August on yearly basis. The Unemployment Rate fell to an 18-month low at 2.7% in August, mildly below the market sentiment of 2.8%.
Looking forward, investors are waiting for the US Industrial Production data, NY Empire State Manufacturing Index, and Trade Balance data to gain fresh trading insight.
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