The USD/CHF pair remained steady on Friday, hovering near 0.9110 during the Asian trading hours after three consecutive days of losses. The U.S. Dollar (USD) extended its declines following weaker-than-expected U.S. Retail Sales data released on Thursday.
U.S. Retail Sales for December increased by 0.4% month-over-month, reaching $729.2 billion. This growth was below the market expectation of a 0.6% rise and lower than the previous month’s revised 0.8% increase.
The data fueled growing expectations that the U.S. Federal Reserve (Fed) could implement two interest rate cuts this year, driving U.S. Treasury yields lower. The 2-year and 10-year Treasury notes were trading at 4.23% and 4.60%, respectively, both on track for a weekly decline of over 3%.
The USD/CHF pair faces further pressure as the U.S. Dollar Index (DXY), which tracks the dollar against six major currencies, struggles for the fifth consecutive session, hovering near 109.00.
In other developments, Chicago Federal Reserve Bank President Austan Goolsbee expressed confidence that the U.S. job market is stabilizing, suggesting that it is not deteriorating further, as reported by Reuters.
The Swiss Franc (CHF), typically a safe-haven currency, could face some headwinds as geopolitical tensions in the Middle East ease. Israel and Hamas have reportedly agreed to a deal to pause the conflict in Gaza after 15 months of fighting, with an agreement expected to take effect on Sunday, pending approval by the Israeli cabinet.
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