Investors await June US inflation figures after the CHF weakens slightly against the USD amid oil price volatility and geopolitical tensions.
The Swiss Franc (CHF) trimmed early gains against the US Dollar (USD) in European trading, with the USD/CHF pair down 0.26% at 0.8048. The US Dollar Index (DXY) edged 0.14% lower to near 100.80 after hitting a three-week low of 100.60 earlier in the session.
Oil prices rebounded after a US official confirmed ongoing technical talks with Iran, despite President Trump declaring a memorandum of understanding collapsed. Renewed US-Iran tensions raised concerns over potential energy supply disruptions, supporting the USD. Markets now focus on Tuesday’s US Consumer Price Index (CPI) data for June, with core CPI expected to rise 2.9% year-on-year.
The CHF strengthened against most major currencies except the Japanese Yen (JPY), reflecting cautious sentiment ahead of the inflation report. The data could influence Federal Reserve policy expectations, with traders assessing whether inflationary pressures persist.