USD/CHF upside attempts remain limited below 0.7945 ahead of the US NFP report

• The US Dollar remains near 0.7875 long-term lows, ahead of the NFP report.
• Swiss CPI returned to positive levels in June, easing fears of deflation.
• US economy is expected to have created 110,000 new jobs in June,.

The US Dollar is trading with marginal gains for the second consecutive day on Thursday, but it seems unable to put any significant distance from the 14-year lows hit earlier this week, with price action limited below 0.7945.

Earlier on Thursday, Switzerland’s Consumer Price Index data revealed an unexpected increase in inflation in June. The yearly CPI rose at a 0.1% pace, returning to positive levels, and easing concerns about deflation.

On the other end, the US Dollar remains on its back foot after a disappointing ADP employment reading on Wednesday raised concerns about the health of the US labour market and boosted expectations op imminent Fed rate cuts.

In this context, June’s Nonfarm Payrolls report, due later today, becomes particularly relevant, as it might help to confirm the odds for Fed easing in the near-term and might boost US Dollar volatility.

The market consensus anticipates a 110,00 net gain on employment creation, following a 139,000 increment in May. The unemployment level, however, is expected to have ticked up to 4.3%, from 4.2% in May, while wage inflation is seen growing at a steady 3.9% yearly rate.