Ella 
USD/CHF dipped near the short-term support at 0.8750 during the European session. The Swiss franc is under pressure as the U.S. dollar index (DXY) shows no direction ahead of U.S. retail sales data for July at 20:30 GMT.
S&P 500 futures fell during the London session on cautious sentiment amid a slowdown in China amid rising deflation risks. China’s economic risks have greatly increased the dollar’s appeal as a safe haven.
The U.S. dollar index traded in a tight range around the 103.00 level as investors awaited further guidance from consumer spending data. Monthly consumer spending is estimated to expand at a faster rate of 0.4%, compared with 0.2% growth in June. Retail sales figures other than autos are expected to show a similar pattern.
Resilience in consumer spending and tightness in the labor market could force Federal Reserve policymakers to keep interest rates higher for longer. The persistence of high interest rates will also fuel fears of a U.S. recession.
In addition to U.S. consumer spending data, investors will also focus on the minutes of the Federal Reserve meeting due to be released on Wednesday. Investors will be looking for clues on interest rate guidance.
Meanwhile, the Swiss franc remained weak as production and import prices showed deflation in July. The monthly economic data shrank 0.1%, while the annual rate still contracted 0.6%. This shows that inflation in Switzerland is under control and that the SNB is handling the inflation situation well. The Swiss National Bank will raise interest rates by 25 basis points to 2% in September, according to a Bloomberg survey.
