Ella 
USD/CHF continues to move lower, trading around 0.8640 during Monday’s Asian session. The U.S. dollar (USD) continued to weaken after dovish comments from Federal Reserve (FED) officials, raising bets that the central bank will cut interest rates in September and weakening USD/CHF.
According to the Financial Times, San Francisco Federal Reserve President Mary Daly stressed on Sunday that the U.S. central bank should take a step-by-step approach to reducing borrowing costs. Additionally, Chicago Fed President Austan Goolsbee warned that central bankers should be cautious about maintaining restrictive policies longer than necessary.
The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against six other major currencies, extended losses for the second consecutive day, hovering around 102.10. Falling U.S. Treasury yields have put downward pressure on the dollar, with 2-year and 10-year yields at 4.05% and 3.88% respectively at press time.
For the Swiss franc, safe-haven capital flows brought about by heightened geopolitical tensions may support the Swiss franc. Reuters quoted local news agency The Times of Israel as reporting that Hamas issued a statement rejecting the terms of the hostage release-ceasefire agreement discussed in Doha on Thursday and Friday. In addition, Ukraine launched its largest invasion of Russia since World War II, fueling concerns about escalating tensions between Ukraine and Russia.
On Friday, Swiss industrial production increased 7.3% annually in the second quarter, rebounding sharply from a downwardly revised 2% decline in the previous quarter. It was the fastest quarterly expansion of industrial production since the first quarter of 2022. Traders may be awaiting trade balance data scheduled for release on Tuesday.
