USD/CHF Pair Remains Near Four-Month Low Despite USD Rebound, Focus on US NFP

The Swiss Franc (CHF) continues to display strength ahead of the upcoming July Consumer Price Index (CPI) report, scheduled for release on Friday.

Market Dynamics:

USD Rebound: The US Dollar Index (DXY) has rebounded from a weekly low of 103.86 to near 104.35, demonstrating a strong recovery.

CHF Strength: The Swiss Franc remains resilient despite the USD's recovery, largely due to anticipation of the upcoming CPI report. Expectations of slower inflation could fuel bets for more rate cuts by the Swiss National Bank (SNB), bolstering the CHF.

Fed Policy: The US Dollar has recovered as investors have already factored in a dovish stance from the Federal Reserve (Fed), which left interest rates unchanged on Wednesday.

Upcoming US Data: Market volatility is expected to persist as investors await the release of the US ISM Manufacturing PMI and Nonfarm Payrolls (NFP) reports for July.

Technical Outlook:
The USD/CHF pair is hovering near a multi-month low, indicating continued pressure on the US Dollar. However, the recent rebound in the DXY suggests potential for a short-term recovery.
Key Factors to Watch:
Swiss CPI Report: The release of the Swiss CPI data on Friday will be closely watched for its potential impact on the Swiss Franc and the USD/CHF pair.
US Economic Data: The upcoming US ISM Manufacturing PMI and NFP reports could influence the US Dollar's trajectory and market expectations for future Fed policy moves.