The Swiss franc fell during today’s Asian session, with the USD/CHF trading at 0.8830. The move comes after the Swiss National Bank (SNB) announced that it has reduced its foreign exchange reserves to a seven-year low of CHF 657 billion, down significantly from last year’s peak of CHF 950 billion. The reduction reflects the central bank‘s repatriation efforts, which are being closely watched by traders.
The broader market is also digesting a mix of economic data from the United States. Yesterday, the U.S. Consumer Sentiment Index surprised on the upside with a reading of 61.3, slightly above the expected 60.5. However, this was offset by a sharper-than-expected decline in Durable Goods Orders, which fell 5.4%, beating forecasts for a more modest decline.
In addition, U.S. jobless claims fell more than expected to 209K from 233K in the previous week. These figures have fueled traders’ concerns about persistent inflation and the possibility of a slowing economy, which could lead to more aggressive tightening measures by the Federal Reserve.
Looking ahead, investors and analysts are eagerly awaiting more economic data to gauge the market’s direction. Next Friday, attention will turn to the Swiss Q3 employment data and the US S&P Global PMI reports for additional insight into economic health and potential future market movements. These data points are expected to provide traders with fresh impetus in assessing the current economic landscape and central bank policies.