• The Swiss Franc weakens against the US Dollar as the Greenback benefits from renewed demand.
• The ISM Services PMI meets expectations in June, while price pressures ease and employment improves.
• Investors digest an unexpected rise in the Swiss Unemployment Rate ahead of the Fed Minutes on Wednesday.

USD/CHF gains 0.37% on Monday, trading around 0.8060 at the time of writing, as the US Dollar (USD) rebounds despite slightly softer expectations for further monetary tightening by the Federal Reserve (Fed).

The Greenback's recovery comes as investors reassess the monetary policy outlook following last week's weaker-than-expected United States (US) Nonfarm Payrolls (NFP) report. Despite signs of a cooling labor market, the US Dollar is benefiting from renewed demand, also supported by persistent geopolitical tensions in the Middle East, particularly around the Strait of Hormuz.

According to the CME FedWatch tool, markets continue to price in a scenario of additional Fed interest rate hikes by the end of the year, with a 76.9% chance. Investors are now awaiting the release of the Federal Open Market Committee (FOMC) Minutes from the June policy meeting on Wednesday for further guidance on the outlook for monetary policy.

Fresh US data released on Monday showed that the ISM Services Purchasing Managers Index (PMI) eased slightly to 54 in June from 54.5 in May, matching market expectations. The survey indicated softer New Orders and lower Prices Paid, while the Employment Index improved.

In Switzerland, the Unemployment Rate unexpectedly rose to 3.1% in June, compared with 3% in May and the market expectation of 3%. The slight deterioration in labor market conditions weighed on the Swiss Franc (CHF) at the start of the week, adding further support to the USD/CHF pair.