Swiss Franc Falls as US Inflation Data Exceeds Forecasts

The US Dollar has strengthened against the Swiss Franc as inflation data for July came in higher than expected. The Personal Consumption Expenditures (PCE) Price Index rose 0.2% month-over-month, exceeding forecasts of a 0.1% increase. Annual headline inflation remained at 3.7%, above market expectations of 3.6%. This has reinforced the view that the Federal Reserve will leave interest rates unchanged at its upcoming meeting.

However, despite this, inflation remains well above the central bank's 2% target, leaving the possibility of an interest-rate hike on the table. Tensions in the Middle East are also contributing to elevated oil prices and clouding the inflation outlook.

The Swiss Franc has weakened against the US Dollar, with USD/CHF trading around 0.8052, up roughly 0.47% on the day. The Greenback's strength is being driven by its value against a basket of six major currencies, which has increased nearly 0.25%.