USD/CHF languishes around 0.7960 with US Consumer Sentiment on focus

• The US Dollar wavers around 0.7960 after rejection from 0.8000 on Thursday.
• A large increase in US Jobless Claims cemented hopes of Fed easing and capped USD's upside attempts.
• Dovish comments by SNB P Schlegel have increased bearish pressure on the CHF..
  

The US Dollar remains trading within a tight range, with upside attempts limited at 0.7980, following a rejection from the 0.8000 psychological area on Thursday. Higher Jobless Claims and moderate consumer inflation figures cemented hopes of Fed cuts and undermined speculative demand for the USD.

Weekly claims for unemployment benefits rose to a four-year high of 263K last week, well beyond the 235K expected and above the previous week's 236K. 

At the same time, August Consumer Prices Index met market expectations, with the yearly inflation accelerating to 2.9% from 2.7% and the core CPI steady, at 3.1%, confirming that the conditions are set for a rate cut in September, and one or two more before the end of the year.

Later today, the US Michigan Consumer Sentiment Index is expected to show a further deterioration in September. The Index is seen falling to 58.0 from 58.2 in August, levels about 15% below the ones seen last year at these times, and adding pressure on the Fed to ease borrowing costs.

The Swiss Franc, however, is failing to capitalise on US Dollar weakness, as dovish comments by the Swiss National Bank (SNB) Chairman Martin Schlegel, stating that the bank will "not hesitate" to ease monetary policy further, keep weighing on demand for the Swiss Franc.