The Swiss Franc (CHF) weakens against the US Dollar (USD) on Wednesday as the Greenback attracts buyers following the release of the latest United States (US) inflation data.
Traders also remain attentive to developments in the Middle East
At the time of writing, USD/CHF trades around 0.8052, up roughly 0.47% on the day. The headline Personal Consumption Expenditures (PCE) Price Index rose 0.2% MoM in July, exceeding the 0.1% forecast and reversing June’s 0.1% decline. On an annual basis, headline inflation remained at 3.7%, above market expectations of 3.6%.
Meanwhile, the core PCE Price Index, the Federal Reserve’s (Fed) preferred measure of underlying inflation, increased 0.2% MoM, matching expectations but accelerating from the 0.1% rise recorded in June. Annual core inflation held steady at 3.3%, also in line with forecasts. Although the inflation figures reinforced expectations that the Fed will leave interest rates unchanged at its upcoming meeting, inflation remains well above the central bank’s 2% target.