The USD/CHF pair retreats from Monday's high at 0.8630 and hovers around the 0.8600 area on Tuesday's Asian session. The pair reverses from a multi-year low following Monday's upbeat US Empire manufacturing survey.
On Monday, the Federal Reserve Bank of New York revealed that the US Empire manufacturing survey of general business conditions index from July fell -5.5 to 1.1, above the market consensus of -3.5. The US Dollar posts a modest gain after the strong-than-expected data. That said, any meaningful USD rebound from its lowest level since April 2022 appears limited as the market participations anticipate that the Federal Reserve (Fed) is nearing the end of its policy tightening cycle.
Against this backdrop, the cautious mood in the market ahead of the US Retail Sales could benefit the safe-haven Swiss Franc. The softer US figure might cap the upside for the US Dollar and act as a headwind for USD/CHF.
Moving on, investors will take cues from the July US Retail Sales later in the day. Also, releasing the June Swiss Trade data could be a decisive key driver for the Swiss Franc and help determine the next direction for the USD/CHF pair.
Source : Fxstreet
