Investors await US inflation figures that could influence Federal Reserve rate cut expectations and dollar strength.
The Swiss Franc weakened against the US Dollar on Wednesday, with USD/CHF trading 0.17% higher at 0.8125. The move comes as markets focus on upcoming US Consumer Price Index data due at 12:30 GMT.
Analysts expect a subdued inflation report, with consensus forecasts at 0.1% month-on-month for headline CPI and 0.2% for core. Year-on-year rates are projected to drop to 3.4% and 2.5%, respectively, nearing the Fed’s 2% target. Lower gasoline prices and rental deflation are seen driving softer readings.
A softer-than-expected core print could reduce the likelihood of a September Fed rate hike, currently priced at around 50%. The US Dollar Index edged up marginally to 99.88 ahead of the release.