USD/CHF continues to fall to near 0.8250, US PMI data attracts much attention

USD/CHF extended its decline during the European morning on Thursday to around 0.8250. USD/CHF weakened due to US fiscal concerns. Traders will take further cues from the U.S. S&P Purchasing Managers' Index (PMI) for May.

U.S. President Donald Trump's "a great, beautiful bill" will be voted on by the House of Representatives on Thursday and, if passed, would increase the federal deficit by $3 trillion to $5 trillion over the next 10 years. This heightened concerns about a deteriorating U.S. fiscal outlook and weighed on investor sentiment. These U.S. fiscal concerns, coupled with a muted performance at a Treasury auction, weakened the U.S. dollar (USD) against the Swiss franc.

U.S. President Donald Trump told European leaders that Russian President Vladimir Putin is not ready to end the war because he thinks he is winning, the Wall Street Journal (WSJ) reported late Wednesday. Trump shifted from suggesting sanctions to proposing low-level talks between Russia and Ukraine at the Vatican.

Traders will also be watching the next round of Iran-U.S. talks in Rome on Friday. If there is any progress in the talks or an easing of geopolitical tensions, it could weaken safe-haven currencies such as the Swiss franc and provide a tailwind for USD/CHF.