USD/CHF ATTRACTS SOME BUYERS ABOVE 0.8650, FOCUS ON US PPI REPORT
- USD/CHF trades in positive territory for the second consecutive day near 0.8670 in Tuesday’s Asian session.
- Investors await the US July PPI report, which is due later on Tuesday.
- The safe-haven flows might support the CHF and cap the pair’s upside.
The USD/CHF pair trades with a bullish bias around 0.8670 during the early European session on Tuesday. Traders prefer to wait on the sidelines ahead of the US key economic data this week. The US Producer Price Index (PPI), Consumer Price Index (CPI) and Retail Sales will be released on Tuesday, Wednesday, and Thursday, respectively.
Traders have priced in nearly 47.5% odds that the US Federal Reserve (Fed) will cut the interest rate by 50 basis points (bps) at its September meeting, down from 52.5% last Friday, according to the CME FedWatch Tool. If the US inflation data this week show that the inflation remains elevated, this could diminish the odds of a Fed rate cut and lift the US Dollar (USD).
The US Producer Price Index (PPI) is projected to ease to 0.1% month-over-month in July from 0.2% in the previous reading. The CPI inflation is estimated to drop from 3.0% YoY in July to 2.9% in June.
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