USD/CHF Tumbles Below 0.8125 as Fed Hike Bets Plummet

The US Dollar is losing momentum against the Swiss Franc, causing USD/CHF to retreat from recent highs. The pair has fallen below 0.8125 after failing to sustain gains above 0.8150 on Thursday.

This decline is largely due to a sharp decrease in market expectations for a Federal Reserve rate hike in September. Investors are now awaiting July US Retail Sales and the University of Michigan Consumer Sentiment data for additional clues about the strength of the US economy.

The earlier broad-based US Dollar rally appears to be losing steam, with several currencies beginning to recover. DBS Group Research noted that changing expectations surrounding US monetary policy and a significant reduction in bets on a September Fed rate increase are contributing factors.