USD/CHF trades in negative territory for the third consecutive day in Friday’s early European session.
The US GDP growth number came in stronger than expected, growing 2.8% in Q2 vs. 1.4% in Q1.
The tech-led global stock market sell-off and Chinese economic slowdown concerns boost the Swiss Franc.
Investors await the US June PCE data, which is due on Friday.
The USD/CHF pair remains under selling pressure around 0.8810 during the early European session on Friday. The Greenback edges lower despite stronger-than-expected US economy data on Thursday. The tech-led global stock market sell-off has fueled a flight to safety, benefiting the safe-haven currencies like the Swiss Franc (CHF).
The US economy grew faster than expected in the second quarter (Q2), with the real GDP expanding at an annualized quarterly pace of 2.8% versus 1.4% in Q1. Nonetheless, the expectations of a September interest rate cut from the Federal Reserve (Fed) remain intact. Financial markets are pricing in a nearly 93% chance that the US Fed will leave its benchmark interest rate unchanged at its upcoming July meeting next week and is likely to cut the rate in September, according to the CME FedWatch Tool. This, in turn, might cap the upside for the US Dollar (USD) in the near term.
