USD/CHF trades firmly near 0.8050 ahead of Swiss inflation data

• USD/CHF exhibits strength near 0.8050 as the US Dollar is broadly outperforming its peers.
• Traders trim Fed dovish bets amid upside US inflation risks.
• Investors await Swiss CPI and US ISM Manufacturing PMI data for October.

The USD/CHF pair demonstrates strength near an over two-week high around 0.8050 during Monday's Asian session. The Swiss Franc pair trades firmly as the US Dollar (USD) holds onto gains due to receding speculation for further monetary policy easing by the Federal Reserve (Fed) this year.

At the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades firmly near 99.85.

Fed dovish bets have eased as officials have become concerned over upside inflation risks, while interest rates reduced by 25 basis points (bps) to 3.75%-4.00% on Wednesday due to labor market concerns. After the monetary policy announcement, Fed Chair Jerome Powell also stated that the December rate cut is "far from a foregone conclusion".

According to the CME FedWatch tool, the probability of the Fed to cut interest rates by 25 basis points (bps) to 3.50%-3.75% in the December meeting has eased to 69.3% from 91.7% seen a week ago.

In Monday's session, investors will focus on the United States (US) ISM Manufacturing Purchasing Managers' Index (PMI) data for October, which will be released at 15:00 GMT. The Manufacturing PMI is expected to come in at 49.2, marginally higher than 49.1 in September.

Meanwhile, the Swiss Franc (CHF) trades calmly ahead of the Swiss Consumer Price Index (CPI) data for October, which will be published at 07:30 GMT. The Swiss CPI is expected to deflate on a monthly basis for the third month in a row. However, the pace of decline is expected to be 0.1%, slower than 0.2% seen in September. On year, the Swiss CPI is estimated to have grown at a faster pace of 0.3% against estimates of 0.2%.