USD/CHF eased off intraday highs after Swiss CPI missed forecasts but stayed
within the weekly range and near a one-year high around 0.8140. June m/m CPI
slowed to 0.0% from 0.2% in May (market est. 0.1%); YoY inflation fell to 0.5%
from 0.6%. The softer prints reinforce expectations the SNB will keep its policy
rate at 0% for the remainder of the year and possibly into 2027. With investors
upping bets on further Fed hikes, the SNB’s low-rate stance may cap further
franc gains. Market attention turns to US nonfarm payrolls later today, forecast
+110k for June after stronger prior-month gains; traders will look for signs
that support a September Fed hike. Dollar upside risk is elevated.
