Swiss Franc weakens as soft inflation and manufacturing data weigh

USD/CHF traded around 0.8090 during European hours, extending gains for a second successive session. The Swiss franc held onto earlier losses following the release of domestic data that pointed to softening price pressures and a sluggish manufacturing sector.

The softer inflation and manufacturing readings reduced the likelihood of any hawkish shift from the Swiss National Bank, dampening demand for the franc. Traders now see limited upside for CHF in the near term as the data reinforces expectations of a cautious central bank stance.

The pair’s move reflects renewed dollar strength against a backdrop of weaker Swiss fundamentals. Market focus turns to upcoming US data, which could further influence the pair’s direction.