Safe-haven flows into the USD lift USD/CHF to 0.8090 amid escalating US-Iran tensions and weak US labor data.
USD/CHF climbed to 0.8090 in Asian trading, recovering from a 0.5% loss the prior day. The pair gained as the US Dollar strengthened on heightened safe-haven demand, driven by persistent US-Iran geopolitical risks and military activity near the Strait of Hormuz.
Iran and Oman are nearing an agreement on a safe shipping route, though Tehran warned reopening the waterway would not be immediate. Meanwhile, Iran-backed Houthi militants attacked Saudi Arabia’s Jazan refinery, and a UAE-operated tanker was targeted in the Strait. Tehran rejected direct US talks, citing alleged breaches of a June interim deal.
US Nonfarm Payrolls fell by 23,000 in July, with June’s figures revised sharply lower to 20,000 from 57,000. Markets now price a 46% chance of a 25-basis-point Fed rate hike in September, down from 67% a week earlier.