The USD/CHF pair continued to decline despite soft CPI figures from Switzerland. Weak US ADP employment and ISM Services PMI data for June also contributed to the downward pressure on the pair. The Swiss National Bank (SNB) may consider further cuts due to softening inflation.
During Thursday’s session, the USD/CHF pair saw a slight decline as market sentiment towards the USD waned following disappointing data releases. The US ISM Services PMI for June showed a contraction in the service sector, while Swiss inflation figures were below expectations.
Focus was on the weak ADP Employment report for June, with private sector job growth falling short of forecasts. The ISM Services PMI also underperformed, signaling a potential Fed rate cut in September. Market attention now turns to upcoming US labor market data for June, which could influence expectations for the easing cycle.
Swiss CPI figures for June revealed a decrease to 1.3% YoY, below the expected 1.4%. This lower inflation rate may prompt the SNB to consider further easing measures, with market odds for a September interest rate cut exceeding 50%.
In terms of technical analysis, the USD/CHF pair’s short-term outlook has turned somewhat negative, with indicators like MACD and RSI losing momentum. Key support levels include the 100-day SMA at 0.8985 and the 20-day SMA at 0.8950, while the immediate target for buyers is at 0.9040.