USD/CHF pares previous losses and returns above 0.7950 amid a stronger US Dollar

• The US Dollar crawls higher following a two-day reversal and returns above 0.7950
• Trade uncertainty and dovish Fed minutes hit the US Dollar on Tuesday and Wednesday.
• The Swiss Franc is drawing support from dwindling hopes of negative SNB rates.

The US Dollar is featuring a moderate recovery on Thursday, paring some losses after the previous two days' reversal. The pair, however, remains trading near long-term lows, with upside attempts capped below the 0.8000 psychological level.

The Greenback extended losses on Wednesday after the minutes of the latest Federal Reserve's Monetary Policy Meeting revealed a deep division among policymakers, with the majority of the MPC showing willingness to reduce borrowing costs in the next months.

Traders ramped up expectations of an at least 25 basis point rate cut in September, according to the CME Group's Fed Watch Tool, and put an end to a five-day rally on US Treasury yields. The US Dollar Index, which measures the value of the Greenback against the six most-traded currencies, retreated from its highs.

In Switzerland, the stronger-than-expected inflation data seen in June has silenced speculation that the Swiss National Bank would be the first major bank to adopt negative interest rates, which is providing some support to the Swiss Franc.

Later today, the US Weekly Jobless Claims will provide further clues about the health of the US labour market, ahead of speeches from Fed officials Waller and Daly, who have been advocating for a less restrictive monetary policy in previous weeks.