The USD/CHF pair rose to 0.9030, hitting late May’s highs on Monday. This increase was driven by anticipation of the release of the FOMC minutes and key labor market figures later in the week. The ISM Manufacturing PMI data from the US showed a contraction in the manufacturing sector for June, but the Greenback remained steady due to high US Treasury yields.
The slightly disappointing ISM Manufacturing PMI for June indicated a decline to 48.5 from 48.7 in April. The Employment Index fell to 49.3 from 51.1, while the New Orders Index improved to 49.3 from 45.4. The Prices Paid Index dropped to 52.1 from 57. As a result, markets are now predicting a 70% chance of a September interest rate cut by the Fed.
Looking ahead, the focus will be on the FOMC minutes release and US labor market data, including Friday’s June jobs report. The Swiss June Consumer Price Index is also expected to remain stable at 1.4% YoY.
From a technical standpoint, the USD/CHF pair is in a positive position, with strong support above key moving averages. The pair has seen seven days of gains out of the last eight, indicating a bullish outlook for the future.