The pair fell below 0.8100 as traders reduced expectations for Federal Reserve rate cuts following the latest inflation report.
The USD/CHF pair declined 0.70% to 0.8091 on Tuesday, retreating below the 0.8100 level. The move followed the release of US inflation data, which led market participants to scale back bets on imminent Federal Reserve rate cuts.
Prior to the report, the pair had traded near 0.8150, supported by expectations of a hawkish Fed stance. Consensus had pointed to a modest pullback, but the sharper-than-anticipated drop reflected a shift in sentiment.
The inflation print prompted a reassessment of monetary policy expectations, though the broader bullish trend for USD/CHF remains intact.