The USD/CHF pair is trading in negative territory near 0.8960 for the second consecutive day [fcf3b697]. Traders have increased their bets on Federal Reserve rate cuts in September following the softer-than-expected June US CPI inflation report [fcf3b697]. The speculation that the Swiss National Bank (SNB) will cut interest rates further may cap the downside for the pair [fcf3b697]. The US CPI dropped 0.1% MoM in June, according to the Bureau of Labor Statistics [fcf3b697]. Chicago Fed President Austan Goolsbee described the latest inflation data as "excellent" and stated that it provided proof that the Fed is on track to meet its 2% target [fcf3b697]. St. Louis Fed President Alberto Musalem also expressed optimism, noting "encouraging further progress" toward the Fed's inflation target [fcf3b697]. San Francisco Fed President Mary Daly highlighted that the cooling of price pressures strengthens the case for rate cuts [fcf3b697].
Geopolitical tensions, political uncertainty in the US and Europe, and concerns about the global economic slowdown may boost safe-haven assets like the Swiss Franc (CHF) [fcf3b697]. However, the speculation that the SNB will cut interest rates further could exert selling pressure on the CHF [fcf3b697].
The updated information from FXStreet provides additional insight into the factors influencing the USD/CHF pair, including the traders' increased bets on Fed rate cuts and the speculation surrounding the SNB's interest rate policy [fcf3b697]. It also highlights the impact of the June US CPI inflation report and the comments from various Fed officials [fcf3b697]. This new information complements the previous story, which mentioned the weak US data and the actions of the Swiss National Bank [bf8bc6bd].
Overall, the USD/CHF pair is weakening below 0.9000 as traders bet on Federal Reserve rate cuts and speculate on further interest rate cuts by the Swiss National Bank [fcf3b697].
