Weaker-than-expected Swiss retail sales data weigh on the franc, lifting USD/CHF to 0.8070 amid Fed policy expectations.
The USD/CHF pair climbed to 0.8070 in Asian trading Friday, extending gains after Swiss Real Retail Sales grew 1.5% year-over-year in June, below the revised 3.1% forecast. The prior month’s reading was also revised down to 3.4% from 3.5%.
The miss reinforced expectations that the Swiss National Bank will maintain its patient stance, with strategists noting the franc’s role as a funding currency amid rising global yields. However, valuations suggest potential for a rebound after recent underperformance.
The dollar’s strength reflects cautious market sentiment, driven by hawkish Fed policy signals and geopolitical tensions, though easing risk aversion may limit safe-haven demand.