The Swiss Franc has gained strength as the U.S. Dollar weakens, following a reversal from its yearly highs last month. The near-term technical outlook for USD/CHF remains bearish, but the pair is nearing a critical support level that could slow the selloff. Stronger-than-anticipated Swiss inflation has contributed to the downward pressure on USD/CHF.
Market focus is now on Friday's U.S. employment report, which could significantly impact December Fed rate expectations. The reaction in Treasury yields is expected to drive renewed volatility in the currency pair.