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USD/CHF remains tepid for the second successive day, trading around 0.8650 during the Asian hours on Wednesday. The USD/CHF pair faces challenges as the US Dollar (USD) struggles with dovish sentiment surrounding the US Federal Reserve (Fed) regarding its monetary policy outlook.However, the recent downbeat Producer Price Index (PPI) data from the United States (US) have decreased the bets for a bigger interest rate cut by the US Federal Reserve (Fed) in September. Furthermore, traders will likely observe the US CPI inflation report on Wednesday, which could offer some hints about the Federal Reserve’s (Fed) interest rate cut path.Additionally, Reuters reported on Tuesday, that Atlanta Fed President Raphael Bostic stated that recent economic data has increased his confidence that the Fed can achieve its 2% inflation target. However, Bostic indicated that additional evidence is required before he would support a reduction in interest rates.Safe-haven demand may have bolstered the Swiss Franc (CHF) amidst escalating geopolitical tensions in the Middle East. On Tuesday, the United States deployed a guided missile submarine to the region, according to the BBC. Additionally, Israeli forces continued their operations near Khan Younis in southern Gaza on Monday. CBC News reported that Palestinian medics indicated Israeli military strikes on Khan Younis on Monday resulted in the deaths of at least 18 people.Traders are likely anticipating Swiss Producer and Import Prices data for July, scheduled for release on Thursday, with expectations pointing to a slight increase in the cost of imported goods. On Friday, the focus will shift to the annual Industrial Production report for the second quarter, which may show a decline in production volumes.More By This Author:EUR/GBP Price Forecast: Breaks Below 0.8550; 14-day EMA Appears As A Next Support Australian Dollar Edges Higher Following Key Economic Data US Dollar Index Price Forecast: Remains Above 103.00 With Expecting A Trend Reversal