USD/CHF offered the latest gains recorded in the previous session, trading around 0.8220 during European hours on Wednesday (6/11). However, the pair may regain some ground as the Swiss Franc (CHF) may weaken on weaker haven demand, driven by improved risk sentiment amid easing tariff tensions between the United States (US) and China.

US Commerce Secretary Howard Lutnick suggested, on Tuesday, a potential resolution with China, noting that the two countries have reached a framework to implement the Geneva Consensus. Meanwhile, Chinese Vice Commerce Minister Li Chenggang said that the communication with the United States has been rational and frank, and he will report the framework to Chinese leaders. However, officials from both sides will seek approval from their leaders before implementation, according to Bloomberg.

US Treasury yields remained steady as traders remained cautious ahead of the upcoming inflation data. The CPI report is expected to provide insights into the economic impact of the recent tariffs and broader inflation trends. The 2-year and 10-year US Treasury yields were at 4.01% and 4.46%, respectively, at the time of writing.

In Switzerland, last week, the Consumer Price Index (CPI) fell 0.1% year-on-year in May, falling below the Swiss National Bank's (SNB) 0-2% target range and marking the first deflation reading since March 2021. The softer inflation data has raised the possibility of the Swiss National Bank (SNB) delivering a 25 basis point interest rate cut at its next meeting on June 19. (alg)

Source: FXstreet