- USD/CHF bounces near 0.8955 in early European session on Monday.
- Higher US PPI data on Friday did not change expectations for a Fed rate cut in September.
- Political uncertainty supports the Swiss franc against the dollar.
The USD/CHF pair rose to 0.8955, snapping the two-day losing streak during the early European session on Monday. The firm US Dollar (USD) provided some support to the pair. Later in the day, market participants will watch the Swiss Producer and Import Prices for June, the New York Fed Empire State Manufacturing Index for July, and the Fed’s Mary Daly speech.
US producer prices rose slightly more than expected in June due to a rise in the cost of services, which boosted the Dollar against the CHF. The US Producer Price Index (PPI) rose to 2.6% on an annual basis in June, compared to the previous reading of 2.4%, above the market consensus of 2.3%. The core PPI rose 3.0% on an annual basis, better than the market expectation of 2.5%. In addition, the University of Michigan Consumer Sentiment Index survey fell to 66.0 in July from 68.2 in June, the lowest level in seven months, falling short of the expected increase to 68.5.
However, higher-than-expected wholesale inflation data did not change expectations that the US Federal Reserve (Fed) could start cutting interest rates in September. Pricing in financial markets indicates a more than 90% probability that the Fed will begin its rate-cutting cycle in September and bets were boosted by another soft US consumer inflation report released on Monday.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
