• USD/CHF inches lower as the Fed is potentially expected to reduce rates in September.
• Cooling inflation in the US has fueled the odds of the Fed delivering three rate cuts this year.
• SNB Chairman Thomas Jordan emphasized that the central bank consistently made appropriate decisions throughout his tenure.

USD/CHF moves sideways with a negative bias, holding mild losses around 0.8830 during the early European hours on Monday. US Dollar (USD) faces challenges due to the cooling inflation and easing labor market conditions in the United States (US), which have fueled expectations of three rate cuts this year by the Federal Reserve (Fed), starting in September. This has put pressure on the USD/CHF pair.

On Friday, the US Personal Consumption Expenditures (PCE) Price Index indicated a modest rise in inflation for June and provided further signs of easing price pressures. The US PCE Price Index rose by 2.5% year-over-year in June, down slightly from 2.6% in May, meeting market expectations. On a monthly basis, the PCE Price Index increased by 0.1% after being unchanged in May.