USD/CHF softens below 0.9150 as investors await US CPI release

• USD/CHF edges lower to near 0.9120 in Wednesday's early European session. 
• Traders will keep an eye on the US December CPI and the threat of potential tariff policies by Trump. 
• Geopolitical risks could boost the CHF and act as a headwind for the pair.

The USD/CHF pair trades with a mild negative bias around 0.9120 during the early European session on Wednesday. The markets might turn cautious ahead of the US Consumer Price Index (CPI) inflation data for December on Wednesday. 

The softer-than-expected US PPI report on Tuesday weighs on the Greenback against the Swiss Franc (CHF). The attention will shift to the US December CPI inflation data, which is due later on Wednesday. Analysts said the impact on the USD from the inflation report is likely to be short-lived as traders will closely monitor the threat of potential tariffs on imported goods by President-elect Donald Trump's incoming administration. 

"Markets are still looking ahead to the incoming administration's policies and the impact on prices," said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

On the Swiss front, Palestinians and Israelis have expressed cautious optimism that a deal on a ceasefire in the Gaza Strip and the release of hostages held there is close after 15 months of devastating war. The escalating geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict could boost the safe-haven flows, benefitting the Swiss Franc.