USD/CHF consolidates around 0.7960 ahead of US inflation data

• USD/CHF ranges around 0.7960 as investors await the US inflation data for September.
• Both US headline and the core CPI are expected to have risen by 3.1% on an annualized basis.
• SNB policymakers expect that inflationary pressures won't remain persistently negative.

The USD/CHF pair trades in a tight range around 0.7960 during the late Asian trading session on Friday. The Swiss Franc pair consolidates as the US Dollar (USD) ranges ahead of the delayed United States (US) Consumer Price Index (CPI) data release.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades inside Thursday's trading range around 99.00.

The US CPI report is expected to show that the headline inflation rose at a faster pace of 3.1% on an annualized basis against the prior release of 2.9%, with core figures growing steadily by 3.1%. On a monthly basis, the headline and the core CPI are estimated to have risen steadily by 0.4% and 0.3%, respectively.

The impact of the US inflation data is expected to be limited on market speculation for the Federal Reserve's (Fed) monetary policy outlook as latest commentaries from officials showed that they are more concerned about the slowing job market than price pressures remaining well-above the 2% target.

In Friday's session, investors will also focus on trade talks between US Treasury Secretary Scott Bessent and China Vice Premier He Lifeng in Malaysia. Top negotiators from both nations are expected to talk over reducing tariffs and non-tariff barriers to promote fair trade practices.

Meanwhile, the Swiss Franc (CHF) trades broadly calm as minutes of the Swiss National Bank's (SNB) September meeting showed on Thursday that officials didn't see the need for any adjustment in the current monetary conditions. SNB policymakers argued that there is no need for further "monetary policy expansion" as inflation is unlikely to remain "persistently negative". Officials also stated that the impact of US tariffs on the Swiss economy would be limited.