Ella 
USD/CHF gave up the gains of the past three trading days and traded around 0.8930 in early European trading on Monday. The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar against six major currencies, was lower at around 105.70. The decline in the U.S. 2-year and 10-year Treasury yields triggered the dollar’s decline, which were 4.73% and 4.25% respectively at the time of writing.
The downside of the U.S. dollar (USD) may be limited as speculation of a delay in the Federal Reserve’s interest rate cuts increased after the U.S. Purchasing Managers’ Index (PMI) came in above expectations on Friday. According to the CME FedWatch Tool, investors are pricing in a 65.9% chance of a Fed rate cut in September, compared to 70.2% a week ago.
The U.S. Composite Purchasing Managers’ Index for June exceeded expectations, rising to 54.6 from 54.5 in May. The figure was the highest since April 2022. The manufacturing PMI rose to 51.7 from 51.3, beating the expected 51.0. Similarly, the services PMI rose to 55.1 from 54.8 in May, beating the consensus forecast of 53.7.
The Swiss franc is struggling against the dollar after the Swiss National Bank (SNB) decided on Thursday to cut interest rates for the second time this year, from 1.50% to 1.25%.
In addition, SNB Chairman Thomas Jordan said that the Swiss franc has strengthened significantly in recent weeks, adding that the central bank is ready to intervene in the foreign exchange market, according to Reuters. This could put pressure on the Swiss franc and support USD/CHF.
