The USD/CHF currency pair settled above recent low of 0.7989, its weakest level since November 19th, after the delayed September PCE inflation data reinforced bets on another interest rate cut by the Federal Reserve next week.
Annual PCE inflation has accelerated to 2.8% in September, or the highest level since April 2024, from 2.7% in August. That figure came in line with market expectations.
And, annual core PCE inflation has eased to 2.8% in September from 2.9% in August.
The rate cut case has also been bolstered by weak US labor market data and dovish comments by Fed Governor Waller and New York Fed President Williams.
Markets are now pricing in about an 87% chance of a 25 basis point Fed rate cut in December, compared to an 85% chance a week earlier.
Markets are also pricing in three additional rate cuts by the end of 2026.
Meanwhile, consumer prices in Switzerland remained flat year-on-year in November, after rising 0.1% in October.
The Swiss National Bank had said it forecast average inflation at 0.2% for 2025.
The Swiss National Bank will likely stick to its 0% interest rate policy next week and well into next year rather than implementing negative rates, according to economists.
The major Forex pair gained 0.12% for the week.
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