The USD/CHF recovers recent losses, trading around 0.9030 during the early European hours on Thursday. The Swiss Franc (CHF) struggles due to a slowdown in Swiss inflation. The Consumer Price Index (CPI) for June decreased to 1.3% year-over-year, from May's four-month high and below market expectations of 1.4%.

On a monthly basis, the CPI remained unchanged in June after a 0.3% rise in May. Additionally, the core CPI, which excludes volatile items such as unprocessed food and energy, decreased to 1.1% year-on-year in June from 1.2% in the previous month.

The US Dollar (USD) struggles as softer data from the United States (US) escalated speculations of the Federal Reserve (Fed) reducing interest rates in 2024.  US ISM Services PMI fell sharply to 48.8 in June, marking the steepest decline since April 2020. This figure was well below market expectations of 52.5, following a reading of 53.8 in May. The ADP Employment report showed that US private businesses added 150,000 workers to their payrolls in June, the lowest increase in five months. This figure fell short of the expected 160,000 and was below the downwardly revised 157,000 in May.

Federal Reserve Bank of Chicago President Austan Goolsbee stated on BBC Radio on Wednesday that bringing inflation back to 2% will take time and that more economic data are needed. However, on Tuesday, Fed Chair Jerome Powell said that the central bank is getting back on the disinflationary path, per Reuters.

The US Dollar Index (DXY), which measures the USD against six major currencies, is under pressure due to lower US Treasury yields. The DXY is trading around 105.30 at the time of writing. As of Wednesday's close, the yields on 2-year and 10-year US Treasury bonds were 4.70% and 4.35%, respectively. US markets will be closed on Thursday in observance of the Independence Day holiday.

Source : Fxstreet