04 Nov 2024

current;-0.86326
target ;-0.85000
sl;-0.86800

• The USD/CHF pair declines as the US Dollar weakens in response to decreasing Treasury yields.
• A recent survey shows that Kamala Harris and Donald Trump are in a tight race in seven key battleground states.
• Meanwhile, the yield on 10-year Swiss bonds is approaching 0.38%, driven by increasing anticipation of more substantial rate cuts from the Swiss National Bank.
• 
  The US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls in October rose by just 12,000, a significant decrease from the revised September increase of 223,000 (originally reported as 254,000), and falling short of the anticipated 113,000. The Unemployment Rate held steady at 4.1% in October, aligning with market expectations.
  
  Traders are keenly observing the upcoming US presidential election on Tuesday, as the latest New York Times/Siena College poll indicates a tight race between Democratic candidate Kamala Harris and Republican nominee Donald Trump across seven key battleground states. Attention will soon turn to the US Federal Reserve's policy decision, with a modest 25 basis point rate cut anticipated later this week.
  
  In Switzerland, the yield on the 10-year government bond fell to approximately 0.38%, its lowest since early October, amid growing expectations for more significant rate cuts from the Swiss National Bank (SNB). This development follows a continued decline in inflation, with the Consumer Price Index (CPI) decreasing by 0.6% year-over-year in October, which was below the 0.8% forecast and represents the slowest growth rate since July 2021.
  
  Swiss inflation has remained unchanged since April, and the October figure significantly underperformed the SNB’s fourth-quarter inflation target of 1%. This situation increases the likelihood that the SNB may contemplate a more substantial rate cut in December to maintain inflation within its target range of 0-2%, reflecting concerns about potential economic weakening.