• The USD/CHF is softening its stance heading into the Friday close.
• The US Dollar is seeing a mild broad-market sell-off to cap off the trading week.
• Investors are increasing their bets that the Fed is done with rate hikes.

The USD/CHF is seeing a step down back into the week's lows near the 0.8860. The Swiss Franc (CHF) caught a soft bolstering from better-than-expected Swiss Industrial Production figures, and the Greenback (USD) is seeing bearish pressure as investors are leaning into bets that the Federal Reserve (Fed) is finally done with their rate hike cycle.

Swiss Industrial Production printed at 2% for the annualized third quarter, above the previous quarter's -0.7%, which was revised slightly higher from -0.8%.

Inflation and growth figures for the domestic US economy appear to be moderating at a quicker pace than markets initially anticipated, once more giving rise to the broader market narrative that the Fed is done with rate hikes and investors are now turning their bets towards when rate cuts will begin.

With Fed policymakers continuing to strike overly-cautious tones in public speaking engagements, market participants are adding extra weight to economic data releases on a case-by-case basis: every signal of deceleration sends market sentiment soaring as traders cheer moving closer to interest rate cuts, and every uptick drives market fears of "higher for longer". 

In the meantime, the Fed's own rate expectations see benchmark interest rates going nowhere fast for the foreseeable future, and the first rate cut isn't expected until well into 2024