USD/CHF continues the losses for the fourth day, trades near 0.8980

• USD/CHF extends its losses on the likelihood of no further interest rate hike by the US Fed.
• Fed is expected to conclude its policy tightening as US economic data ease.
• CHF could lose ground as Swiss CPI persists below the 2% target.

USD/CHF plummets for the fourth successive day, trading lower near 0.8980 during the early European hours on Monday. The pair faces challenges as the US Dollar demonstrates weakening after a slew of disappointing employment data released from the United States (US).

US Non-Farm Payrolls (NFP) data might have exerted downward pressure on the US Dollar (USD), as the slowdown in the labor market could convince the US Federal Reserve (Fed) to conclude its monetary policy tightening. The report, revealing a figure of 150K, marked a significant decline from the 297K recorded in September.

Additionally, the US Unemployment Rate rose to 3.9%, contrary to the market’s expectation of remaining stable at 3.8% in October. The cooling down of labor market data is seen as a response to the US Fed’s efforts to address inflationary pressures through higher interest rates.

US Dollar Index (DXY) extends losses, trading below 105.00, at the time of writing. The weakening in the US Dollar (USD) can be attributed to downbeat US Treasury yields, a reaction to disappointing US labor data. The yield on a 10-year US Treasury bond stood at 4.59% by the press time.

On the other side, the Swiss Franc (CHF) might encounter challenges against the Greenback especially with the Swiss Consumer Price Index (CPI) persisting below the 2% target. Swiss annual inflation at 1.7% aligned with estimates and the previous release. The monthly inflation saw a slight increase of 0.1%, in line with expectations.

Investors will focus on Swiss seasonally adjusted Unemployment Rate data on Tuesday. Furthermore, the US Michigan Consumer Sentiment Index will be released later in the week.