USD/CHF remains on the defensive near 0.8200 on US fiscal concerns
The USD/CHF pair remains on the defensive around 0.8200 during the early European trading hours on Monday.
US trade policy uncertainty and concerns over fiscal health drag the US Dollar (USD) lower against the Swiss Franc (CHF). Investors await the FOMC Minutes on Wednesday, which might offer some hints about the interest rate path.
Softer-than-expected US inflation reports last week and concerns over fiscal health lift bets that the US Federal Reserve (Fed) will step in to support the US economy.
This, in turn, exerts some selling pressure on the Greenback. Markets expect the US Federal Reserve (Fed) will cut twice this year, with the next move not happening until September.
Investors will also take more cues from the preliminary reading of US Gross Domestic Product (GDP) for the first quarter (Q1) and Personal Consumption Expenditures (PCE) Price Index for April. In case of a stronger-than-expected outcome, this could help limit the USD’s losses in the near term.
Source: Fxstreet