Swiss Franc ticks up against US Dollar despite bright Swiss ZEW economic expectations

The Swiss Franc (CHF) experienced a slight dip against the US Dollar (USD) on Wednesday, but it recovered some of its losses following the release of a positive Swiss ZEW Economic Expectations Index. The USD/CHF pair dipped slightly, settling below 0.8930, after reaching a high of 0.8940 earlier in the session. The ZEW survey, conducted by the Centre for European Economic Research, revealed that the Swiss Economic Expectations Index improved for the second month in a row in August to a reading of 12.1, up from 10.0 in July.

This marked the index's best performance since November. Market attention now turns to the release of the US Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred gauge of inflation, which could impact the dollar's performance in the coming months. Analysts at ING predict the USD will remain relatively stable around the release of the core PCE data, which is expected to show minimal month-on-month growth at 0.2%.

Meanwhile, oil prices have dropped about 8% from last week's highs, thanks to renewed talks between Iran and Oman to reopen the Strait of Hormuz, contributing to a more favorable market sentiment and putting pressure on the safe-haven USD.