Anna 
During Monday’s European morning session, USD/CHF is showing an uptrend, currently trading around 0.8515, marking a 0.13% increase on the day. The pair is benefiting from a rebound in the U.S. dollar and the rise in U.S. Treasury yields.
The positive sentiment for USD/CHF follows better-than-expected U.S. labor data released on Friday, which weakened the case for the Federal Reserve (Fed) to consider interest rate cuts. Traders are now pricing in a more than 60% chance of a rate cut at the March meeting, according to the CME Fedwatch tool. December’s nonfarm payrolls (NFP) surpassed expectations, increasing by 216,000 compared to the consensus estimate of 170,000. Additionally, average hourly earnings rose by 0.4% monthly in December, exceeding the expected 0.3%.
Investors are closely monitoring the Swiss consumer price index for December, scheduled for release later on Monday. The anticipated annual CPI growth is 1.5% year-on-year, up from the previous 1.4%, with monthly CPI growth expected to remain stable at -0.2% m/m.
Looking ahead, Thursday’s U.S. inflation data will be a focal point for market participants. Headline consumer price index (CPI) is expected to rise by 3.2% year-on-year, while core CPI is anticipated to slow to 3.8% year-on-year from the previous 4%.
