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Swiss franc steadies as dollar slips after softer US inflation data
USD/CHF hovered near 0.8090 in Asian trade after US CPI slowed to 3.5% year over year in June, below the 3.8% consensus.
FXStreet reports USD/CHF steadied during Asian trading after the dollar slipped following softer-than-expected US inflation data. The pair had already logged 0.7% losses in the previous session and was around 0.8090.
The CPI report showed inflation easing to 3.5% year over year in June, down from 4.2% in May, and below the 3.8% market consensus. Headline CPI also declined 0.4% month over month in June, reversing the 0.5% increase in May, shifting expectations toward a less hawkish Federal Reserve stance.
According to FXStreet, Fed Chair Kevin Warsh reiterated the central bank’s commitment to restoring price stability in congressional testimony on Tuesday, without signaling a more aggressive policy approach. Still, the CME FedWatch Tool showed markets pricing in about a 50% chance of a Fed rate hike in September.
FXStreet also pointed to oil and inflation risks amid renewed US-Iran tensions, after CENTCOM confirmed additional military strikes on Iranian targets near the Strait of Hormuz. Separately, Switzerland’s producer and import prices fell 2.1% year over year in June, extending a deflation streak, with the monthly decline tied mainly to cheaper petroleum products.