Ella 
USD/CHF is trading bullishly near 0.8670 during early European trading on Tuesday. Traders tend to wait and see ahead of key U.S. economic data this week. The U.S. Producer Price Index (PPI), Consumer Price Index (CPI) and retail sales will be released on Tuesday, Wednesday and Thursday respectively.
Traders are pricing in a near 47.5% chance that the Fed will cut interest rates by 50 basis points at its September meeting, up from 52.5% on Friday, according to data from the CME FedWatch Tool. If U.S. inflation data this week shows inflation remains elevated, it could reduce the likelihood of a rate cut by the Federal Reserve and boost the dollar.
The U.S. producer price index (PPI) in July is expected to slow to 0.1% on a monthly basis from the previous value of 0.2%, and the annual CPI inflation rate is expected to fall to 2.9% in June from 3.0% in July.
On the other hand, rising geopolitical tensions and economic uncertainty in the Middle East could boost safe-haven currencies such as the Swiss franc. Israel stepped up operations in the southern Gaza city of Khan Younis on Monday, raising the prospect of a wider Middle East conflict. Israel is also preparing for imminent attacks by Iran and Lebanese Hezbollah in retaliation for the killing of Hamas leader Ismail Haniyeh in Tehran at the end of July.
