The USD/CHF pair is trading with a slight bearish bias around 0.9015 in Thursday’s Asian session. Fed officials are cautious and not committing to interest rate cuts. The Swiss CPI is expected to show a 1.4% increase in June.
The pair is seeing mild losses near 0.9015 in early Asian trading hours on Thursday, influenced by a weaker US Dollar and declining US bond yields. US markets will be closed on Thursday for Independence Day, with attention shifting to US employment data on Friday.
The softer-than-expected US Services Purchasing Managers Index for June is putting pressure on the Greenback. The US Federal Reserve officials, in their June meeting, indicated that inflation is moving in the right direction but not fast enough to warrant rate cuts. Some policymakers stressed the importance of patience, while others mentioned the possibility of hiking rates if inflation rebounds.
The Swiss National Bank’s interest rate cut in June continues to weigh on the Swiss Franc. Investors will be watching the Swiss Consumer Price Index data for June, with expectations of a 0.1% MoM decrease from May and a 1.4% increase YoY.
The Swiss Franc is considered a safe-haven asset, favored by investors during market stress due to Switzerland’s stable economy and political neutrality. The Swiss National Bank meets quarterly to decide on monetary policy, aiming for an annual inflation rate below 2%.
Macroeconomic data releases in Switzerland are crucial for assessing the economy’s health and impacting the Swiss Franc’s valuation. Switzerland’s dependency on the Eurozone makes the CHF’s fortunes closely linked to Euro movements.