USD/CHF falls 0.22% to 0.8070 as safe-haven demand for CHF outweighs upbeat US consumer confidence figures.
USD/CHF slipped 0.22% to 0.8070 on Friday, extending losses as geopolitical tensions boosted demand for the Swiss Franc despite stronger-than-expected US consumer sentiment. The University of Michigan’s preliminary Consumer Sentiment Index rose to 54.4 in July from 49.5 in June, beating forecasts and signaling improving household confidence.
The US Dollar Index (DXY) held near 100.80 after Thursday’s rebound, but softer CPI and PPI data earlier this week have reduced expectations for a near-term Federal Reserve rate hike. Markets remain split on a potential September move, while mixed inflation expectations—one-year easing to 4.2% and five-year steady at 3.3%—suggest moderating price pressures.
Heightened Middle East tensions, including reports of Iran preparing to disrupt Red Sea oil routes, continued to support the Swiss Franc’s safe-haven appeal, offsetting the Greenback’s modest gains from economic data.