Ella 
The USD/CHF pair climbed to 0.8955, breaking a two-day decline in early European trading on Monday, supported by a stronger US Dollar (USD). Later in the day, market focus shifts to Switzerland’s Producer and Import Prices for June, alongside the NY Empire State Manufacturing Index for July and a speech by Fed’s Mary Daly.
US producer prices exceeded expectations in June, driven by higher service costs, boosting the Greenback against the Swiss Franc (CHF). The US Producer Price Index (PPI) rose to 2.6% year-on-year, surpassing the previous 2.4% and market consensus of 2.3%. Meanwhile, core PPI increased to 3.0% year-on-year, outperforming the expected 2.5%. In contrast, the University of Michigan’s Consumer Sentiment Index fell to 66.0 in July from June’s 68.2, marking a seven-month low and missing the anticipated rise to 68.5.
Despite the hotter-than-expected wholesale inflation figures, market expectations for a US Federal Reserve (Fed) rate cut in September remain unchanged. Financial markets are pricing in a greater than 90% probability of a Fed rate cut next month, buoyed by recent soft US consumer inflation data.
However, an attempted assassination of former US President Donald Trump on Saturday could potentially boost safe-haven demand, benefiting the Swiss Franc (CHF) against the USD. According to BBC reports, Trump sustained a gunshot wound to the ear during a rally in Butler, Pennsylvania, resulting in one fatality and critical injuries to two others.
