• USD/CHF extends its winning streak due to the dovish mood surrounding the Fed’s policy outlook.
• CME's FedWatch Tool suggests an increase in odds of a 50-basis point Fed rate cut to 74.5% in September.
• Stable inflation has raised the likelihood of a third consecutive rate cut by the SNB in September.

USD/CHF continues its losing streak that began on July 30, trading around 0.8500 during the European session on Monday. This downside of the USD/CHF pair is attributed to expectations of the Federal Reserve’s (Fed) reducing interest rates in September.

Disappointing US jobs market data and a larger-than-expected contraction in the ISM Manufacturing PMI have raised the probability of a 50-basis point rate cut in September, increasing to 74.5% from 11.5% a week earlier, according to the CME's FedWatch Tool.

US Nonfarm Payrolls (NFP) increased by 114K in July from the previous month of 179K (revised down from 206K). This figure came in weaker than the expectation of 175K, data showed on Friday. Additionally, the US ISM Manufacturing Purchasing Managers Index (PMI) tumbled to an eight-month low of 46.8 in July. Moreover, traders await ISM Services PMI for July on Monday, which is expected to rise to 51.0 from 48.8 prior.