USD/CHF consolidates above 0.7950 after rejection at 0.8000

• The US Dollar failed again at 0.8000 and is looking for direction within a tight range above 0.7950.
• A moderate risk appetite keeps the US Dollar on its back foot on Friday.
• In Switzerland, soft inflation data is weighing on a deeper Swiss Franc recovery.

The US Dollar was rejected again at the 0.8000 psychological level against the Swiss Franc, and is trading lower on Friday, weighed by a moderate risk appetite. The pair, however, remains trading range-bound within the weekly range, with 0.7930 holding downside attempts for now.

The US Dollar edged up on Thursday, as Fed Dallas President Lorie Logan warned about ccutting interest rates too fast and affirmed that she is not eager to ease monetary policy further, which dented investors' hopes of a rate cut in October.

Weak US employment data has been weighing on the USD this week

US data, however, confirmed that employment creation has stalled, which keeps pressure on the Fed to support the labour market. In the absence of Jobless Claims data, the focus shifted to US Challenger Job Cuts, which showed a decline on layoffs but also the weakest year-to-date hiring levels since 2009, during the financial crisis.

These figures come after the ADP Employment Change earlier revealed a 32K decline in net employment in September, against market expectations of a 50K increase, and the revision of August data to a 3K decline from the 54K gain previously estimated.

In Switzerland, CPI figures released on Thursday confirmed the deflationary trends in the Swiss economy. Consumer prices grew at a steady 0.2% year-on-year pace in September, against expectations of a moderate uptick to 0.3% while monthly inflation accelerated its contraction to -0.2% from -0.1% in August. These figures add pressure on the Swiss National Bank to cut interest rates into negative territory and are keeping the Swiss Franc from rallying further.