The USD/CHF pair retraces towards the critical round-level support of 0.8400 during the North American session on Tuesday. The US Dollar (USD) faced selling pressure following the release of the United States (US) Consumer Price Index (CPI) data for April, which revealed that inflation grew at a moderate pace, coming in below market expectations. According to the US Bureau of Labor Statistics (BLS), the headline CPI rose 2.3% year-on-year in April, down from 2.4% in March and missing the 2.4% forecast. The core CPI, which excludes volatile food and energy components, remained steady at 2.8%, aligning with analyst estimates.

The US Dollar Index (DXY), which gauges the performance of the USD against six major currencies, corrected to near 101.30 from the monthly high of 102.00 seen on Monday. Traders have pared back Fed dovish bets for the July meeting, with the CME FedWatch tool showing a 61.4% probability of interest rates remaining steady in the current 4.25%-4.50% range. Despite this, broader concerns over a cooling US economy and lingering US-China trade uncertainties have kept the Greenback under pressure.

The Swiss Franc (CHF), meanwhile, trades higher against most major peers, except antipodeans, as the currency benefits from its safe-haven status amid global economic uncertainties. The pair remains cushioned near the horizontal support from the September 6 low of 0.8375, a former major resistance level.

Source: Fxstreet