USD/CHF defends 0.9220 ahead of US Retail Sale

• USD/CHF edges higher on the last trading day of the week.
• Lower US Treasury yields undermine the demand for the US dollar.
• Fed tapering, inflationary concerns, and job data influence traders decision.

The USD/CHF pair accumulates mild gains on Friday in the early Asian session. After testing the low near 0.9194 after the US PPI data, the pair managed to bounce back near 0.9250. At the time of writing, USD/CHF is trading at 0.9235, up 0.05% for the day.

The US benchmark 10-year Treasury yields trade at 1.51% on softer US Producer Price Index (PPI) readings. The PPI rises 0.5% in September, below the market expectations of 0.6%. Further, the Initial Jobless Claims falls to a new pandemic low at 293,000 much below the market consensus of 318,000. The greenback follows the US bond yields and remains pressured below 94.00. It is worth noting that, S&P 500 Futures is trading at 4,434, up 0.12% for the day.

In addition to that, the President and CEO of the Federal Reserve Bank of Philadelphia said he is not expecting rate hikes until late 2022, or early 2023. 

On the other hand, the Swiss franc loses momentum on higher inflation data. Switzerland’s producer and import prices jump 4.5% in September on a YoY basis. 

As for now, traders are looking for the US Retails Sales data to take fresh trading insight.

USD/CHF additional levels