USD/CHF loses traction below 0.9100, eyes on NFP data

• USD/CHF extends its downside near 0.9095 amid softer USD on Friday. 
• The Fed kept its benchmark rate on Wednesday as inflation remains high. 
• Swiss CPI inflation was hotter than expected in April, climbing to 1.4% YoY from a rise of 1.0% in March.

The USD/CHF pair trades in negative territory for the third consecutive day on Friday during the early European session. The pair edges lower to 0.9095 after retreating from a seven-month high of nearly 0.9224 due to the softer US Dollar (USD) broadly. Investors await the highly-anticipated US Nonfarm Payrolls (NFP) for April on Friday, which is forecast to show 243K job additions in the US economy. 

The US Federal Reserve (Fed) decided to keep monetary policy on hold on Wednesday. During the press conference, Fed Chair Powell noted that progress on inflation has stalled recently and that it would take longer to gain confidence that inflation is moving towards the 2% target. The higher-for-longer US rate narrative is likely to lift the Greenback and cap the pair’s downside in the near term. Apart from this, the US central bank announced a slowing in its balance sheet runoff (QT). 

The annual inflation in Switzerland accelerated faster than expected in April, the Federal Statistics Office reported on Thursday. The Swiss Consumer Price Index (CPI) inflation climbed to 1.4% YoY in April from a rise of 1.0% in March, above the market consensus of 1.1%. The Swiss Franc (CHF) gained traction after the data was released and created a headwind for the USD/CHF pair.  Last week, Swiss National Bank (SNB) chairman Thomas Jordan said the central bank had brought inflation under control, with the bank estimating price rises to be within its target band for the next few years.