USD/CHF extends downside below 0.9000 as US Retail Sales drop by most in two years

• USD/CHF edges lower to around 0.8990 in Monday's early Asian session. 
• The weaker US Retail Sales undermine the US Dollar. 
• The uncertainty and geopolitical risks might boost the safe-haven flows, benefiting the Swiss Franc. 

The USD/CHF pair extends its decline to around 0.8990 during the early European session, pressured by the weaker US Dollar (USD). The Federal Reserve (Fed) Patrick Harker and Michelle Bowman are set to speak later on Monday. On Tuesday, the Swiss Industrial Production will be released. 

US Retail Sales dropped by the most in nearly two years in January, weighing on the Greenback. Data released by the US Census Bureau on Friday showed that US Retail Sales dropped by 0.9% in January versus a 0.7% increase (revised from 0.4%) prior This figure came in weaker than the estimation for a decrease of 0.1%. Traders raised bets that the Fed would cut interest rates again as soon as June.

Meanwhile, US Industrial Production rose by 0.5% MoM in January, compared to 1.0% (revised from 0.9%) in December. This reading came in better than the estimation of a 0.3% rise. 

Trump administration officials are preparing to meet with Russian officials on Tuesday in Saudi Arabia to discuss a possible agreement on ending the war in Ukraine. If talks between U.S. and Russian officials improve the odds of a peace deal being reached that ends the war, safe-haven buying demand may diminish. However, the uncertainty and geopolitical concerns are likely to boost the Swiss Franc (CHF).