USD/CHF sticks around 0.8000 following KOF Leading Indicator Survey

USD/CHF remains steady following a five-day losing streak, trading around 0.7990 during the European hours on Monday. The pair sticks around 0.7957, the lowest since September 2011, recorded on Friday. The Swiss Franc (CHF) moves little against the US Dollar (USD) after the KOF Leading Indicator was released in Switzerland, which fell to 96.1 in June from 98.6 in May. The readings came below market forecasts of 99.3, marking the lowest reading since October 2023.

Earlier this month, the Swiss National Bank (SNB) cut interest rates to 0% in response to easing inflationary pressures and indicated it may move into negative territory if downside risks persist. The Swiss central bank warned, in its Q2 Bulletin, that global trade risks could weigh on growth, forecasting GDP expansion between 1% and 1.5% this year.

The USD/CHF pair faced challenges as the US Dollar struggles amid rising expectations of the Federal Reserve (Fed) cutting interest rates at the September meeting. The President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, noted on Friday that he was sticking to his view that cooling inflation would allow the Fed to cut its policy rate twice that year, beginning in September.

Data showed on Friday that US Personal Spending unexpectedly fell in May, the second decline this year. Meanwhile, US Personal income dropped by 0.4% in May, the largest decrease since September 2021. Traders will likely observe US labor market data scheduled to be released later this week to gain further impetus on the US Federal Reserve’s (Fed) policy outlook.