The USD/CHF pair edged lower through the mid-European session and dropped to one-week lows, around the 0.8960 region in the last hour. The pair witnessed some selling on Tuesday and extended its recent pullback from levels just above mid-0.9000s, or three-week tops touched last Friday. This marked the third day of a downtick and was sponsored by the prevalent cautious mood, which tends to benefit the safe-haven Swiss franc. That said, a modest US dollar strength might help limit the downside for the USD/CHF pair.
Investors, however, are likely to refrain from placing any aggressive directional bets, rather prefer to wait on the sidelines ahead of Thursday's release of the US consumer inflation figures. This will be another piece of important macro data that would set the tone for the FOMC meeting on June 15-16 and assist traders to determine the near-term trajectory for the USD/CHF pair.