USD/CHF eases to 0.8050 following dovish comments by Fed's Daly

• The US Dollar pulls back from mid-term highs at 0.8080 but remains on track for a strong weekly performance.
• San Francisco Fed President has hinted at further interest rate cuts in the coming months.
• Later today, the US Michigan Consumer Sentiment Index is expected to endorse Fed doves' positions.
  

The US Dollar is posting moderate losses against the Swiss Franc on Friday. The pair eased from six-week highs at 0.8080 to levels near 0.8050, but remains on track for its best weekly performance since April after having rallied 1.4% in the last five days.

San Francisco Fed President Mary Daly added some bearish pressure on the US Dollar earlier on Friday, pointing to further interest rate cuts in the coming months, as she described the labour market as a "worrisome" point.

Later today, the US Michigan Consumer Sentiment Index is expected to provide one of the few data points after the US government's closure last week. The Index is expected to reflect a further deterioration of consumers' confidence, which will provide additional reasons for Fed doves.

In Switzerland, the economic calendar has been light this week, but the tame inflation data and the weak consumption and business activity data released last week are feeding expectations that the SNB might be forced to adopt negative interest rates and keep the Swiss Franc under pressure.

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