• USD/CHF remains supported near 0.8560 with US PPI on the horizon.
• Surprisingly upbeat US employment and hot inflation data for September have eradicated the Fed 50 rate cut scenario.
• The SNB is expected to cut interest rates further this year.

The USD/CHF pair wobbles near the immediate support of 0.8560 in Friday’s European session. The Swiss Franc pair edges higher despite the US Dollar (USD) exhibits a subdued performance. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, falls slightly but remains close to an eight-week high of around 103.00.

The outlook of the US Dollar remains firm as traders are expecting the Federal Reserve (Fed) to cut interest rates again in the November policy meeting but at a gradual pace of 25 basis points (bps), according to the CME FedWatch tool.

Lately, market participants were anticipating the Fed to deliver another 50-bps cut next month, as seen in September. Market expectations for the Fed's sizeable rate cut waned after the blowout United States (US) job data and hotter-than-expected Consumer Price Index (CPI) report for September.

For more cues on the Fed’s interest rate outlook, investors will focus on the US Producer Price Index (PPI) data for September, which will be published at 12:30 GMT. The PPI report is expected to show that the headline producer inflation rose by 1.6%, slower than 1.7% in August year-on-year. On the contrary, the annual core PPI is estimated to have accelerated to 2.7% from the prior release of 2.4%.