On Wednesday, the USD/CHF pair retreated from a near one-week high of 0.8498.

On Tuesday, U.S. Democratic nominee Harris and Republican nominee Donald Trump held the first presidential debate between the two, with the two sides trading barbs on a number of topics, including abortion restrictions.

After the debate between the two sides, Harris' probability of winning the election increased from 56 cents per dollar to 59 cents per dollar, while Trump's probability of winning the election dropped from 47 cents per dollar to 42 cents per dollar, according to online gaming site PredictIt.

In addition, the latest data showed that the U.S. CPI rose 0.2 percent on a seasonally adjusted basis in August, the same increase as in July. Year-on-year inflation was 2.5%, the lowest 12-month increase since February 2021. However, core CPI, which excludes food and energy prices, rose 0.3%, up from 0.2% the month before.

The higher-than-expected core inflation rate suggests ongoing price pressures in the economy that could influence the Fed's future monetary policy decisions.

Markets now expect that there is about a 37% chance that the Fed will raise interest rates by 50 basis points in September and a 63% chance that it will raise rates by 25 basis points.

As of 09:52 GMT on Wednesday, the USD/CHF pair was down 0.14% at 0.8457.