Swiss franc fell in European trade for  a second session against dollar, almost hitting two-month lows following Swiss inflation data. 

Such data showed consumer prices slowed down in May for the third month in a row as pressures ease off on Swiss National Bank's policymakers. 

The dollar rose 0.4% against Swiss franc to 0.9120, with a session-low at 0.9074, after closing down 0.4% on Friday, resuming losses and recovering from two-month lows at 0.9148. 

Swiss Inflation

Swiss consumer prices rose 2.2% in May, slowing down from 2.6% in the precious reading, above estimates of 2.1%. ‏

Such data reduced inflationary pressures on SNB's policymakers and hurt chances of a 0.5% rate hike at the June meeting. 

Swiss Rates

Swiss interest rates remain around 1.5%, the highest since 2008, almost the last amongst the major central banks worldwide. 

The Dollar

The dollar index rose 0.3% on Monday for yet another session against a basket of major rivals.

Following mixed US labor data, it's now unlikely for the Federal Reserve to raise interest rates this month, but it's highly likely it'll do so in July. 

Gold prices fell in European trade for another session on track for two-month lows, as dollar continues to dominate. 

The latest US payrolls report bolstered the case for high US interest rates for an extended duration, and hurt chances of a US rate cut later this year.

Haven demand on the precious metal declined as well after Congress passed the bill raising the US debt ceiling, squashing concerns of a financial default. . 

Gold Prices Today

Gold prices fell 0.5% to $1,938 an ounce, with a session-high at $1,950, after losing 1.5% on Friday, the first loss in four days, and the largest since May 5, resuming losses after a short recovery from two-month lows at $1,932. 

Gold lost 0.5% last week, the fourth weekly loss in a row, and the longest such streak of losses since June 2022 as dollar strengthens. 

The Dollar

The dollar index rose 0.3% on track for a second session, almost hitting 11-week highs at 104.69, against a basket of major rivals.

A stronger dollar makes dollar-denominated gold futures costlier to holders of other currencies. 

US Jobs Data

The US economy added just 339 thousand new jobs in May, beating estimates of 193 thousand handily. 

However, US unemployment rose to a 7-month high at 3.7% from a 53-year nadir at 3.4% plumbed in April, while averages wage rose 0.3% last month, slowing down from 0.4%. 

US Rates

As wages slow down and unemployment increases, it's now likely the Federal Reserve will hold off raising interest rates in June.

Current pricing for a 0.25%% Fed interest rate hike in June currently stands at 27%.

Pricing for such hike at the July meeting however now stands at a strong 65%. 

US Debt Ceiling

Both chambers of Congress passed the bill raising the US debt ceiling until January 2025, while putting limitations on government spending until the 2024 presidential elections.

US President Joe Biden plans to sign the bill into law later today to avoid a default on financial payments. 

The SPDR

Gold holdings at the SPDR Gold Trust stayed flat on Friday at 938.11 tones, the lowest since May 17. 

Euro declined in European trade for a second session against dollar, almost hitting two-month lows ahead of European Central Bank President Christine Lagarde's speech later today ahead of the European Parliament. 

Dollar extended its gains to 11-week highs on alternative investment demand amid bets the Federal Reserve will maintain high US interest rates for an extended period of time. 

EUR/USD fell 0.3% to 1.0683, with a session-high at 1.0711, after losing 0.5% on Friday, resuming losses after a recovery from two-month lows at 1.0635. 

Euro lost 0.2% last week against dollar, the fourth weekly loss in a row, and the longest such streak of weekly losses this year amid concerns about a gap in interest rates between Europe and the US. 

Lagarde 

ECB President Christine Lagarde is due to testify before the Committee on Economic and Monetary Affairs of the European Parliament, in Brussels.

Lagarde said on Thursday that inflation in the euro zone remains too high and will likely remain so for a long period of time. 

Lagarde added there's still no proof that core inflation has peaked yet, with still some space available for policy tightening and interest rate hies in Europe.

European Rates

Recent inflation data showed European consumer prices fell to 15-month lows in May, reducing inflationary pressures on ECB policymakers. 

The Dollar

The dollar index rose 0.3% today for another session, almost hitting 11-week highs at 104.69 against a basket of major rivals.

US non-farm payrolls surged past estimates in May, however wages were slower than expected and unemployment rose from recent 53-year lows, paving the way for the Fed to snap its policy tightening path. 

Several Fed officials indeed said recently they'd prefer the Fed to stop its current path of policy tightening and conduct deeper studies on US economic conditions.

Bets on a US Fed rate hike now moved from June to July, with a 55% likelihood of a 0.25% rate hike at the July meeting. 

US stock indices rose on Friday after Congress passed the bill raising the debt ceiling level, and following positive employment data. 

Employment Data

Earlier data showed the US economy added 339 thousand new jobs in May, easily blistering through estimates of 193 thousand. 

Unemployment however rose to 3.7% last month ,while analysts expected a drop to 3.4%. 

US Debt Ceiling

Earlier today, US Senate passed the bill raising the US debt ceiling in order to avoid a catastrophic debt default. 

US President Joe Biden lauded the successful vote to raise the debt ceiling until 2025, noting it's a big victory for the economy and US people. 

On trading, Dow Jones rose 1.5% as of 15:49 GMT to 33,543, while S&P 500 rose 1.1%, or 48 points to 4,269, as NASDAQ added 0.8%, or 109 points to 13,203.