USD/CHF edges lower near 0.8660 on subdued US Dollar, US PMI data awaited

• USD/CHF continues its losing streak on a weaker US Dollar.
• SNB maintained the key interest rate at 1.75%.
• SNB Chairman Thomas Jordan’s hawkish remarks reinforced the strength of the Swiss Franc.
• DXY hit a four-month low at 101.77 on Thursday on the Fed’s dovish outlook.

USD/CHF moves on a downward trajectory for the fifth successive day, trading around 0.8661 during the Asian session on Friday. On Thursday, the USD/CHF pair recovered some intraday losses after dropping to a five-month low at 0.8630. The Swiss National Bank (SNB) has chosen to maintain the key policy rate at 1.75% on Thursday, citing a noticeable downward trend in domestic inflation.

Additionally, SNB Chairman Thomas Jordan has emphasized the central bank’s readiness to tighten monetary policy if deemed necessary, even though domestic inflation has consistently stayed within the 0-2% target range for the past six months, as of November.

The US Dollar Index (DXY) hit a four-month low at 101.77 on Thursday, trading around 101.90, by the press time. The dovish outlook from the US Federal Reserve (Fed) regarding the trajectory of interest rates has fueled a rally in US bond prices. As a result, yields on US coupons have decreased, putting downward pressure on the US Dollar (USD).

The positive economic data from the United States (US), such as a 0.3% increase in Retail Sales (MoM) for November (surpassing the expected decline of 0.1%) and Initial Jobless Claims at 202K (below the anticipated 220K), failed to ignite any strength in US Dollar.

Investors are likely turning their attention to the S&P Global Purchasing Managers Index (PMI) data on Friday, seeking additional insights into the economic conditions in the United States for further impetus in the market.