The USD/CHF pair extended its steady intraday descent and dropped to fresh daily lows, around the 0.9240 region during the early North American session. The US dollar witnessed a modest pullback from the highest level since April 8 and prompted some profit-taking around the USD/CHF pair on Thursday. The pair has now retreated around 30-35 pips from intraday tops, near the 0.9270 region, though any further downside is likely to remain limited. Investors have been speculating that the Fed will begin tightening its highly accommodative monetary policy earlier if price pressures continue to intensify. This, along with a strong pickup in the US Treasury bond yields, should act as a tailwind for the USD and extend support to the USD/CHF pair.

On the economic data front, the US Initial Weekly Jobless Claims fell more than expected to 364K during the week ended June 25. The positive print, to a larger extent, was offset by an upward revision of the previous week's reading to 415K and failed to provide any boost to the greenback. Meanwhile, the underlying bullish tone in the financial markets – as depicted by a generally positive mood around the equity markets – might continue to dent demand for the safe-haven Swiss franc. This might turn out to be another factor that should help any meaningful decline for the USD/CHF pair.