Ella 
In Asia on Wednesday, USD/CHF remained tepid for the second consecutive day, trading around 0.8650. USD/CHF faces challenges as the greenback faces headwinds from the U.S. Federal Reserve’s (FED) dovish outlook on its monetary policy.
However, recent sluggish U.S. producer price index (PPI) data has reduced market bets that the Federal Reserve will cut interest rates significantly in September. Additionally, traders are likely to watch the U.S. CPI inflation report on Wednesday, which could provide some signals on the Fed’s path to cutting interest rates.
In addition, Atlanta Federal Reserve President Raphael Bostic said recent economic data strengthened his confidence that the Fed will achieve its 2% inflation target, Reuters reported on Tuesday. However, Bostic said more evidence needs to be seen before he supports a rate cut.
Safe-haven demand may have supported the Swiss franc (CHF) amid rising geopolitical tensions in the Middle East. According to the British Broadcasting Corporation (BBC), the United States deployed a missile submarine to the region on Tuesday. Separately, Israeli forces continued operations near Khan Younis in southern Gaza on Monday. Palestinian medics said an Israeli army attack on Khan Younis on Monday killed at least 18 people, CBS reported.
Traders may be looking ahead to Swiss July producer and import price data due on Thursday, which is expected to see a slight rise in the cost of imported goods. On Friday, market focus will turn to the annual industrial production report for the second quarter, which is likely to show a decline in industrial production.
