The pair declines 0.30% on reduced safe-haven demand amid progress in US-Iran talks ahead of Friday’s agreement signing.
USD/CHF falls for a second straight session, trading near 0.7921 as easing geopolitical tensions dent demand for the US Dollar. The pair drops 0.30% on the day despite lingering caution over Israel-Lebanon risks and Friday’s formal agreement signing.
The US Dollar Index (DXY) hovers around 99.50, reflecting mixed sentiment. Traders await the Federal Reserve’s policy announcement on Wednesday, with markets pricing in no rate change but focusing on forward guidance amid rising oil-driven inflation concerns.
FXStreet data shows a hawkish tilt among FOMC voters, though the analysis excludes new Fed Chair Kevin Warsh. Uncertainty over the Fed’s inflation response may limit further USD downside.