Swiss Franc languishes at 16-month lows despite bright KOF leading Indicators data
The Swiss Franc (CHF) extends losses for the fifth consecutive day against a firm US Dollar (USD) on Tuesday, unfazed by the unexpected improvement in the KOF leading Indicator report seen earlier in the day.
The Swiss Franc (CHF) has been on a downward trend for the fifth straight day against the US Dollar (USD) on Tuesday, despite a positive reading from the KOF leading Indicator report. The USD/CHF pair is currently trading at 0.8330, just below the 16-month high of 0.8339 reached earlier in the day. The KOF leading Index improved to 109.1 in September, its highest in six years, following a revised 107.5 reading in August.
The report indicates a favorable economic outlook, with sectors such as manufacturing, services, and construction performing well. However, foreign demand and financial and insurance services have shown minor weakening. The US Dollar remains strong, supported by positive macroeconomic data, rising US Treasury yields, and optimism for further interest rate hikes by the Federal Reserve.
Fed Governor Lisa Cook echoed these views, expecting continued inflation pressure from artificial intelligence and Middle East conflicts. Strategists at Rabobank noted that speculative positioning in the Dollar has remained relatively unchanged. Looking ahead, market expectations suggest further rate hikes, with the OIS curve indicating potential for more than three hikes by the end of next year.
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