USD/CHF retreats following dismal US Services PMI

The USD/CHF pair is facing selling pressure near 0.9100 due to weak ISM Services PMI data from the United States Institute of Supply Management (ISM). The Services PMI, which represents the service sector, fell to 51.4 from expectations of 52.7 and the prior reading of 52.6.

The US Dollar has also experienced significant selling pressure, with the US Dollar Index (DXY) dropping to 104.40. Market expectations for the Federal Reserve (Fed) reducing interest rates from the June meeting have eased significantly, with traders pricing in a 54% chance that the Fed will trim interest rates in June.

The CME FedWatch tool shows that traders are pricing in a 54% chance that the Fed will trim interest rates in June, down from 70% a week ago. Market prospects for the Fed pivoting to rate cuts have eased due to hawkish guidance from Fed policymakers.

This week, investors will focus on the US Nonfarm Payrolls (NFP) data for March, which will be published on Friday. On the Swiss Franc front, weak Real Retail Sales have boosted expectations of more rate cuts by the Swiss National Bank (SNB).