USD/CHF in the Spotlight: PCE Core Deflator and Michigan cons...

USD/CHF in the Spotlight: PCE Core Deflator and Michigan Consumer Sentiment Forecasts

As the new trading week unfolds, forex traders are closely monitoring several key economic indicators that could significantly impact currency pairs, particularly the USD/CHF. The Swiss KOF Leading Indicator for July is expected to be at 90.5, inviting comparisons with the previous month's figure of 90.8.

In the United States, attention is focused on the Employment Cost Index for the second quarter, which is forecasted to increase by 1.1% quarterly. This will be compared to the first quarter's 1.2% quarterly rise. Additionally, projections for US Employment Wages in Q2 point to a 1.2% quarterly expansion, while Employment Benefits are predicted to grow by 1.3% quarterly. These figures will be compared to the first quarter's 1.2% quarterly increase for both wages and benefits.

Another significant US economic indicator is the Personal Income for June, anticipated to rise by 0.5% monthly, and Personal Spending, expected to increase by 0.4% monthly. In comparison, May's data showed a 0.4% monthly rise in Personal Income and a 0.1% monthly increase in Personal Spending. The Real Personal Spending for June is predicted to remain flat at 0.0% monthly, whereas May recorded a 0.5% monthly increase. Furthermore, the PCE Deflator for June is expected to decline by 0.1% monthly and rise by 3.1% on an annualized basis, compared to May's 0.1% monthly increase and 3.8% annualized rise. The PCE Core Deflator for June is forecasted to rise by 0.2% monthly and 4.2% on an annualized basis, compared to May's 0.3% monthly increase and 4.6% annualized rise.

Also on the radar is the preliminary US Michigan Consumer Sentiment for July, projected to be at 65.5, compared to June's reading of 64.4. The preliminary Current Conditions for July are expected to be at 70.4, and preliminary Expectations are predicted to be at 61.8, compared to June's figures of 69.0 and 61.5, respectively.

Amidst these economic indicators and data comparisons, the forecast for the USD/CHF remains bearish, with the currency pair having experienced a significant decline last week before entering a sideways trend. Forex traders are closely watching these indicators to gauge potential shifts in market sentiment and currency trends.