USD/CHF FINDS RESISTANCE AT 0.9000 AND PULLS BACK

The USD/CHF declined to 0.8990, with mild downwards movements.

The USD is extending its gains due to a cautious market outlook.

Jerome Powell was on the wires on Wednesday and provided no highlights.

The USD/CHF experienced a quiet session on Wednesday near the 0.8990 area, seeing slight losses, with the trajectory of the pair being set by the US Dollar strengthening further. No high-tier reports were released, and the following highlights will be Consumer Confidence data from the US on Friday and next week's inflation data.

In that sense, after sharply declining last week, the US DXY index, which measures the value of the USD against a basket of currencies, rose to 105.60, up by 0.20% as markets turned cautious, awaiting fresh catalyst on a quiet week.

On Tuesday, several Federal Reserve (Fed) officials were on the wires and didn’t provide any relevant insights regarding the bank's overall stance. Overall, they welcomed the latest data from the labor market, which saw evidence of cooling down, but they hinted at needing further evidence to say that the job is done. On Wednesday, Chair Powell was seen at the US Central Bank statistics conference and refrained from commenting on the monetary policy.

For next week, markets are seeing the US Consumer Price Index (CPI)  to have advanced 0.1% MoM in October while the Core measures 0.3%. In addition, the outcome of the inflation reading may shape the expectations for the next Fed meeting, which, as for now, markets are betting on low odds of a hike