USD/CHF is holding steady near its two-week high of 0.8983. The US GDP Annualized (Q1) is expected to show a slight increase of 1.4%, up from the previous growth of 1.3%. The US Dollar may find support from higher yields, with 2-year and 10-year yields currently at 4.75% and 4.33%, respectively.
Investors are anticipating Friday’s Core PCE Price Index inflation data, which is projected to decrease year-over-year to 2.6% from 2.8%. This could potentially lead to the Federal Reserve considering rate cuts sooner rather than later.
On the Swiss side, economic data remains quiet, leaving the USD/CHF pair influenced by broader market trends and US data. The Swiss Leading Indicator for June is expected to show an improved reading of 101.0 compared to the previous 100.3.
The Swiss Franc (CHF) is considered a safe-haven asset due to Switzerland’s stable economy, strong export sector, and political neutrality. The Swiss National Bank (SNB) meets quarterly to decide on monetary policy, aiming for an annual inflation rate of less than 2%. Macroeconomic data releases in Switzerland can impact the CHF’s valuation, as the country is heavily dependent on the Eurozone economies.