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USD/CHF retraces its recent losses registered in the previous session, trading around 0.8630 during the early European hours on Wednesday. The US Dollar (USD) continues to gain support as robust US Employment and Consumer Price Index (CPI) data have dampened expectations of aggressive Federal Reserve (Fed) easing.Markets are now anticipating a total of 125 basis points in rate cuts over the next 12 months. According to the CME FedWatch Tool, there is currently a 94.1% probability of a 25-basis-point rate cut in November, with no expectation of a larger 50-basis-point reduction.On Tuesday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, indicated that he expects only one additional interest rate cut of 25 basis points this year, in line with his projections from the US central bank’s meeting last month. “The median forecast called for a total of 50 basis points in cuts, on top of the 50 basis points already implemented in September,” according to Reuters.On the Swiss side, the decline in the inflation rate to 0.8% in September, a three-year low, has alleviated the likelihood of aggressive rate cuts by the Swiss National Bank (SNB). This might have provided support for the Swiss Franc (CHF).However, the yield on the 10-year Swiss government bond declined to 0.41% on Tuesday as traders assess the broader economic and financial environment. Bond yields are often a reflection of inflation expectations.More By This Author:Silver Price Forecast: XAG/USD Moves Above $31.50 As US Treasury Yields Ease Australian Dollar Continues To Lose Ground Despite Hawkish Remarks From RBA Hunter GBP/USD Remains Below 1.3050 Following UK Labor Data
