Ella 
The USD/CHF trend was consolidating on the bearish side, maintaining a moderate decline near 0.8830 in early European trading on Monday. The U.S. dollar (USD) faces challenges as U.S. (US) inflation and labor market conditions slow, fueling expectations that the Federal Reserve (Fed) will cut interest rates three times this year starting in September. This has put pressure on USD/CHF.
On Friday, the U.S. personal consumption expenditures (PCE) price index showed a slight increase in inflation in June and provided further signs that price pressures are easing. The U.S. PCE price index increased by 2.5% year-on-year in June, slightly lower than the 2.6% increase in May, in line with market expectations. On a monthly basis, the PCE price index increased by 0.1% after remaining unchanged in May.
However, U.S. core PCE inflation, which excludes volatile food and energy prices, also climbed to 2.6% in June, in line with May’s increase and above expectations for 2.5%. The core PCE price index rose 0.2% month-on-month in June, compared with 0.1% in May.
On the Swiss side, Thomas Jordan, the president of the Swiss National Bank who will step down at the end of September, mentioned in an interview with “Bieler Tagblatt” on Saturday: “I would rather be thought of as boring or stubborn than follow the rules.” criticized for wrong monetary policy.
