USD/CHF slumps to 0.9000 as Swiss Franc strengthens ahead of Swiss Inflation

• USD/CHF declines to near 0.9000 despite the US Dollar’s recovery.
• The US Dollar rebounds amid uncertainty ahead of US data-packed week.
• The Swiss Franc reflects sheer strength ahead of the Swiss CPI report for May

The USD/CHF pair extends its losing streak for the third trading session on Monday. The Swiss Franc asset weakens even though the US Dollar has rebounded amid uncertainty ahead of the United States data-packed week.

This week, the US economic calendar is full of top-tier events such as the ISM Manufacturing and Services PMI, ADP Employment Change and the Nonfarm Payrolls (NFP) data for May, and the JOLTS Job Openings for April. The economic data will provide significant cues about when the Federal Reserve (Fed) will start lowering its key borrowing rates this year.

Currently, financial markets expect that the Fed will choose the September meeting as the earliest point from when it will start reducing interest rates.

In today’s session, the US Dollar will be impacted by the US ISM manufacturing PMI, which will be published at 12: 30 GMT. The Manufacturing PMI is estimated to have risen to 49.8 from 49.2. However, a figure below the 50.0 threshold is considered as contraction. Investors will also focus on other sub-components such as New Orders and Prices Paid Indexes, which are leading indicators of inflation.

Meanwhile, the Swiss Franc exhibits strength ahead of the Swiss Consumer Price Index (CPI) data for May, which will be published on Tuesday. May’s CPI data will be the latest inflation reading available to Swiss National Bank (SNB) policymakers that will indicate whether a subsequent rate-cut move is required. Monthly CPI data is expected to have grown at a faster pace of 0.4% from the prior reading of 0.3%.