USD/CHF retreats on softer Swiss inflation, unwinding long positions

USD/CHF has pulled back 0.6% to 0.9120 following weaker-than-expected Swiss inflation data, prompting traders to unwind extended long positions. Swiss CPI fell to 1.1% year-over-year in October, below the forecasted 1.3%, increasing speculation that the Swiss National Bank may consider easing monetary policy sooner than anticipated. The pair had reached overbought conditions near 0.9200, making it vulnerable to profit-taking on any franc-positive news. Technical indicators suggest immediate support at 0.9100, with the 50-day moving average at 0.9080 providing additional downside cushion. Resistance now sits at 0.9150, previously a support level. GBP/USD gained 0.3% to 1.2680, while USD/JPY consolidated around 150.50, reflecting selective dollar weakness. The Nasdaq 100 futures rose 0.5%, indicating improved risk sentiment. Traders should monitor SNB communications for further policy hints, as any dovish shift could limit CHF gains despite the inflation miss.