USD/CHF climbs to near 0.8750 amid strength in Greenback, US Manufacturing PMI eyed

• USD/CHF jumps to near 0.8750 as the US Dollar roars ahead of factory data.
• Global recession fears improve the appeal of the US Dollar Index,
• Swiss markets remain closed on Tuesday on account of a National Holiday.

The USD/CHF pair delivers an upside break of the consolidation formed around 0.8700 in the London session. The Swiss Franc asset picks strength following the footprints of the US Dollar Index (DXY). Fears of global recession improve the appeal of the US Dollar, making it a safe-haven asset.

S&P500 futures posts some losses in Europe, portraying caution among market participants amid Q2 corporate earnings season. US equities remained choppy on Monday as investors remain cautious ahead of labor market data, which will be published this week.

The US Dollar Index (DXY) extends its three-day winning streak as Federal Reserve (Fed) policymakers remain confident about more interest rate hikes amid tight labor market conditions. Chicago Fed Bank President Austan Goolsbee favors further policy tightening despite easing inflationary pressures.

Meanwhile, investors are awaiting the United States Manufacturing PMI to be reported by the Institute of Supply Management (ISM). As per the estimates, US factory activities remained higher in July at 46.5 but continued its placement in the contracting phase. It is worth noting that a figure below 50.0 is considered contracting.

Markets in the Swiss economy are closed on Tuesday on account of the National Holiday, therefore, investors will focus on US economic calendar for guidance. Later this week, Swiss July Consumer Price Index (CPI) data will remain in focus. As per expectations, monthly inflation deflated by 0.1% vs. an expansion of 0.1% recorded for June. Annual inflation softened to 1.6% against the former release of 1.7%.