Photo by Claudio Schwarz on Unsplash
 

The USD/CHF pair trades in positive territory around 0.8010 during the early European trading hours on Thursday. The Swiss Franc (CHF) weakens against the US Dollar (USD) on softer Swiss inflation data. Traders brace for the US weekly Initial Jobless Claims report, which is due later on Thursday. 

Data released by the Swiss Federal Statistical Office on Wednesday showed that the Swiss Consumer Price Index (CPI) inflation eased to 0% YoY in November from 0.1% in the previous month. This figure came in softer than the estimation of 0.1%. The lower-than-expected inflation reading supports the view that the Swiss National Bank (SNB) will maintain an accommodative monetary policy. This, in turn, could lead to a weakening of the Swiss Franc (CHF) against the Greenback.

On the USD’s front, US President Donald Trump said on Tuesday he plans to announce his choice to succeed Jerome Powell as head of the Fed early next year. Reuters reported that White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next Fed chair. Hassett is expected to push for more rate cuts, which could exert some selling pressure on the USD against the CHF. According to the CME FedWatch Tool, there is nearly an 89% chance of a quarter-point rate cut at next week's meeting.

Data released by the Automatic Data Processing (ADP) on Wednesday showed that private employers lost 32,000 jobs in November, compared to a rise of 47,000 (revised from 42,000) recorded in October. This figure came in below the market consensus of 5,000 growth and marked the largest monthly decline since early 2023.  

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