• USD/CHF remains confined in a narrow range below the 0.8800 mark on Thursday.
• Money market futures do not anticipate higher borrowing rates.
• Investors will closely watch the US Consumer Price Index (CPI) for July.

The USD/CHF pair remains range-bound around 0.8770 in the early Asian session. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, trades mixed and remains above 102.40 on Thursday. Market participants await key US inflation data for fresh impetus.

On Tuesday, US trade data showed a sluggish economic rebound and subdued global demand in the country. The US trade deficit narrowed sharply in June, with the figure coming in at $65.5 billion, higher than expectations of $65 billion and below the $68.3 billion prior.

Additionally, Imports fell 1.0% to $313 billion from $316.1 billion the previous month, the lowest level since November 2021. The Commerce Department reported that a drop in Imports on Tuesday might indicate a slowdown in company investment and domestic demand despite the Federal Reserve's significant interest rate rises. Meanwhile, Exports dropped 0.1% to $247.5 billion, a 15-month low.

According to the CME FedWatch Tool, the odds for a rate hike in September are 13.5%. Money market futures do not anticipate higher borrowing rates. Nevertheless, the dovish stance from Fed officials might cap the upside in the US Dollar and act as a headwind for the USD/CHF pair.

On the Swiss front, the State Secretariat for Economic Affairs (SECO) revealed on Monday that the Swiss Unemployment Rate came in at 1.9% in July, matching expectations. The figure remained unchanged compared to the June reading and marked its lowest level since October 2022.

In the absence of the economic data release from Switzerland, the US Consumer Price Index (CPI) for July will be in the spotlight this week. The figure is expected to rise from 3% to 3.3%, and the core rate is forecast to stay at 4.8%. Also, the weekly Jobless Claims will be due on Thursday. Market participants will keep an eye on the data and find trading opportunities around the USD/CHF pair