Geopolitical de-escalation between Iran and Israel reduces safe-haven flows into the USD, pressuring the pair near 0.7970.
USD/CHF fell to 0.7970 in Asian trading Tuesday, retreating after two sessions of gains as the US Dollar weakened. The decline follows a temporary ceasefire agreement between Iran and Israel, easing geopolitical tensions and curbing demand for the Greenback as a safe haven.
The pair’s move aligns with broader USD softness, though downside may be limited. Israeli Prime Minister Benjamin Netanyahu warned the conflict with Iran and Hezbollah remains unresolved, while Iran’s military issued a stern threat of harsher retaliation for any further Israeli aggression.
Markets remain cautious amid shifting Fed policy expectations, driven by strong US jobs data and renewed inflation concerns. Higher interest rates could further dampen non-yielding assets like Silver, reinforcing the Dollar’s underlying support.