Ella 
USD/CHF was trading around 0.8980 in the European session on Thursday, struggling to hold near the two-week high of 0.8983 recorded on Wednesday. Investors awaited the annualized growth rate of the US gross domestic product (GDP) in the first quarter to be released later in the North American session. The growth rate is expected to rise to 1.4% from the previous value of 1.3%.
The dollar struggled as traders expected the US core PCE price index to fall to 2.6% from 2.8% in May on an annual basis, released on Friday. The data is the inflation indicator favored by the Federal Reserve. Market participants may expect that signs of a retreat in inflation will prompt the Federal Reserve to consider an early rate cut.
The US dollar index (DXY), which measures the value of the US dollar against six other major currencies, may receive support from rising US Treasury yields. At press time, the 2-year and 10-year Treasury yields were 4.75% and 4.33%, respectively.
Reuters cited the view of Federal Reserve Governor Michelle Bowman on Tuesday that keeping the policy rate stable for some time may be sufficient to control inflation. Meanwhile, Fed Governor Lisa Cook said a rate cut would be appropriate “at some point” given significant progress in inflation and a cooling labor market. However, Cook remained vague on the timing of easing.
For Switzerland, the economic calendar remains unchanged for this trading day, with the USD/CHF exchange rate to be influenced by broader market trends and US data. On Friday, the KOF Swiss Economic Institute is likely to release its Swiss Leading Indicator for June, which measures future trends in overall economic activity. The survey is expected to report an improved reading of 101.0 from 100.3 previously.
