Ella 
USD/CHF fell to around 0.8960 during early European trading on Friday. The pair was supported by a weaker dollar after U.S. consumer prices unexpectedly fell in June. Investors will get more fresh impetus from the U.S. Producer Price Index (PPI) for June and the preliminary Michigan Consumer Sentiment Index for July, which will be released later on Friday.
The U.S. Producer Price Index (PPI) fell 0.1% month-on-month in June after remaining unchanged in May, according to data released by the Bureau of Labor Statistics on Thursday. The figure marked the lowest monthly reading since May 2020. Meanwhile, the CPI rose 3% year-on-year, the lowest in a year. The softer inflation data fueled expectations that the Federal Reserve (Fed) will cut interest rates in the coming months.
Chicago Fed President Austan Goolsbee said earlier on Friday that the latest inflation data was “very good,” adding that the reports prove that the Fed is achieving its 2% target. Meanwhile, Alberto Moussallem, president of the St. Louis Fed, noted that the Fed has made “encouraging further progress” toward its inflation target. Mary Daly, president of the San Francisco Fed, noted that cooling price pressures strengthens the case for a rate cut, though when that will happen remains a matter of debate. Traders see a near 85% chance that the Fed will ease policy in September, according to CME Group’s FedWatch Tool.
In Switzerland, geopolitical tensions, political uncertainty in the United States and Europe, and concerns about a global economic slowdown could boost safe-haven assets such as the Swiss franc (CHF). However, speculation that the Swiss National Bank (SNB) will cut rates further could put some selling pressure on the franc.
