USD/CHF pair retreats to 0.8136 after failing to breach 0.8152, with broader USD weakness supporting the Franc amid geopolitical tensions.
The Swiss Franc (CHF) halted its three-day decline against the US Dollar (USD) Thursday, with the USD/CHF pair pulling back to 0.8136 after testing a yearly high near 0.8152. The move follows a modest correction in the US Dollar, despite escalating US-Iran tensions that typically support safe-haven demand for the Greenback.
The US Dollar Index (DXY) fell 0.13% to 101.00, reflecting broad-based weakness. Earlier, the Franc had weakened as oil prices surged on fears of supply disruptions from the Middle East conflict, complicating the Federal Reserve’s policy outlook even as US inflation eased in June.
Geopolitical risks intensified after Iran warned of retaliation against US strikes on its infrastructure, following a US Central Command announcement of a 12th round of strikes. Markets remain cautious as tensions could disrupt energy supplies and influence Fed rate expectations.