USD/CHF loses momentum below 0.8100 despite hopes for a Russia-Ukraine peace deal 

• USD/CHF loses traction to around 0.8070 in Tuesday’s early European session.

• Hopes for a Russia-Ukraine peace deal might weigh on the Swiss Franc, a safe-haven currency. 

• Hot US wholesale prices last month dimmed the prospect of an oversized 50 bps Fed rate cut.

The USD/CHF pair tumbles to near 0.8070 during the early European session on Tuesday. However, the potential downside for the pair might be limited amid optimism of a truce in the conflict between Russia and Ukraine, with US President Donald Trump planning a summit meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy very soon.

Trump said on Monday that the United States (US) would help guarantee Ukraine's security in any deal to end the war with Russia. The "Coalition of the Willing" of 30 nations reached an agreement to provide security assurances for Ukraine and coordinate actions with the US.

Trump is planning a meeting between Zelenskiy and Putin after a conference with European leaders on Monday. Trump said he discussed the plan with Putin in a call during his negotiations with the European leaders. Optimism surrounding Russia-Ukraine talks could dampen the safe-haven demand and weigh on the Swiss Franc (CHF). 

Nonetheless, a jump in US wholesale prices last month and a solid increase in July's Retail Sales figures diminish the odds for a more aggressive policy easing by the Fed, which could underpin the Greenback in the near term. Fed fund futures traders are now pricing in an 83% possibility of a September Fed rate cut, after last week briefly fully pricing in a move, according to the CME FedWatch tool.

Traders will take more cues from the Fed's annual Jackson Hole conference later on Friday, as it might offer some insight about the US economic outlook and interest rate path. Any dovish remarks from Fed officials could drag the USD lower in the near term.