• USD/CHF depreciates as traders expect the Fed to reduce rates in September.
• NBC News projected that Vice President Kamala Harris had secured endorsements from a majority of the Democratic Party’s delegates.
• The Swiss Franc may limit its upside as the SNB could deduct interest rates further.

USD/CHF halts its three-day winning streak, trading around 0.8890 during the Asian session on Tuesday. The US Dollar (USD) faces pressure as expectations rise for a Federal Reserve (Fed) rate cut in September. Last week, Fed Chair Jerome Powell noted that the three US inflation readings this year "add somewhat to confidence" that inflation is on track to meet the Fed’s target sustainably, implying that interest rate cuts might be approaching.

Additionally, Federal Reserve Bank of New York President John Williams remarked on Friday that the long-term trends leading to lower neutral interest rates before the pandemic are still in effect. Williams stated, "My own Holston-Laubach-Williams estimates for r-star in the United States, Canada, and the Euro area are about the same level as they were before the pandemic," as reported by Bloomberg.