The Swiss Franc strengthens as the US Dollar retreats from recent gains amid persistent risk aversion and US rate hike expectations.
USD/CHF fell to around 0.7860 in early European trading on Monday, snapping a five-day winning streak. The decline followed the US Dollar’s reversal of intraday gains, despite ongoing risk aversion and speculation over further US interest rate increases.
The pair had climbed steadily over the past week, supported by safe-haven demand and hawkish Federal Reserve signals. Prior to the drop, USD/CHF traded near multi-week highs, reflecting broader USD strength against major currencies.
Market focus remains on US monetary policy and global risk sentiment, with traders assessing the potential for additional Fed tightening.