USD/CHF slides below 0.8500 mark, downside seems limited ahead of US inflation figures

Source Fxstreet
  • USD/CHF trades with a negative bias for the second straight day amid a softer USD.
  • The Fed rate-cut uncertainty might hold back traders from placing directional bets.
  • A positive risk tone could undermine the CHF and limit losses ahead of the US CPI.

The USD/CHF pair drifts lower for the second straight day on Thursday and slips below the 0.8500 psychological mark during the Asian session. Spot prices, however, remain confined in a familiar trading band held over the past two weeks or so as traders keenly await the release of the latest US consumer inflation figures before placing fresh directional bets.

Heading into the key US data risks, the US Dollar (USD) remains depressed in a one-week-old range amid the uncertainty over the Federal Reserve's (Fed) rate-cut path and is seen exerting some pressure on the USD/CHF pair. That said, the incoming US macro data underscored the fundamental resilience of the American economy. This, along with mixed signals from several Fed officials, forced investors to scale back expectations for a more aggressive policy easing in 2024.

In fact, New York Fed President John Williams said on Wednesday that the US central bank is in a ‘good place’ and has time to think about what’s next for rates, though would eventually need to get policy back to more neutral levels. In contrast, Atlanta Fed President Raphael Bostic earlier this week noted that the central bank still needs to give tight policy time to work on cooling off inflation, which has declined more than expected, and sees two 25 bps cuts by the year-end.

Nevertheless, diminishing odds for an imminent Fed rate cut in March allow the yield on the benchmark 10-year US government bond to hold steady above the 4.0% threshold and support prospects for the emergence of some USD dip-buying. Apart from this, a generally positive tone around the equity markets is likely to undermine the safe-haven Swiss Franc (CHF) and help limit deeper losses for the USD/CHF pair, warranting caution for aggressive bearish traders.

Investors might also prefer to wait for the release of the latest US consumer inflation figures, due later during the early North American session, which will influence the Fed's future rate decisions. This, in turn, will play a key role in driving the USD demand and determining the next leg of a directional move for the USD/CHF pair.

Technical levels to watch

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold rebounds to $3,946 off $3,870 as oil does the Fed's work — but the ETF bid is still missingGold closed at $3,946, up 1.84% from a one-year low of $3,870.25, as Brent's 7.6% slide cut December hike odds to 77%. ETF holdings are still shrinking — a short-covering bounce, not new money.
Author  Irene Q.
Nov 03, Tue
Gold closed at $3,946, up 1.84% from a one-year low of $3,870.25, as Brent's 7.6% slide cut December hike odds to 77%. ETF holdings are still shrinking — a short-covering bounce, not new money.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - November 5, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 5, 2026. Read on for the details.
Author  Mitrade
Nov 05, Thu
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 5, 2026. Read on for the details.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - November 6, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 6, 2026. Read on for the details.
Author  Mitrade
Yesterday 01: 36
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for November 6, 2026. Read on for the details.
placeholder
Gold's $250 week runs into the last payrolls before DecemberSpot gold traded at $4,080.79 after a roughly 6% weekly rally from the Oct 30 low of $3,869.85, touching $4,146.63 on Nov 5. Three bids are stacked into the move: real-rate relief, record official-sector buying, and a geopolitical premium. Tonight's October payrolls (+65K consensus, 4.2% unemployment) decide which bid survives, with $4,000 and $4,200 as the two lines.
Author  Irene Q.
Yesterday 03: 03
Spot gold traded at $4,080.79 after a roughly 6% weekly rally from the Oct 30 low of $3,869.85, touching $4,146.63 on Nov 5. Three bids are stacked into the move: real-rate relief, record official-sector buying, and a geopolitical premium. Tonight's October payrolls (+65K consensus, 4.2% unemployment) decide which bid survives, with $4,000 and $4,200 as the two lines.
placeholder
Micron's $4.5 billion Taiwan fab won't make a chip until 2028 — the market sold it as a 2026 problemMicron fell 17.46% to $656.39 after Bloomberg reported construction at its $4.5 billion Taoyuan Fab 11E had all but halted over a labor dispute. The plant was not due online until 2028, so no 2026 output is lost. With FY27 EPS consensus near $160 and 2027 HBM sold out, the selloff is a peak-cycle multiple reset, not a demand collapse — and $650 is the line that separates the two.
Author  Irene Q.
23 hours ago
Micron fell 17.46% to $656.39 after Bloomberg reported construction at its $4.5 billion Taoyuan Fab 11E had all but halted over a labor dispute. The plant was not due online until 2028, so no 2026 output is lost. With FY27 EPS consensus near $160 and 2027 HBM sold out, the selloff is a peak-cycle multiple reset, not a demand collapse — and $650 is the line that separates the two.
Related Instrument
goTop
quote