- USD/CHF steadies as traders remain cautious amid uncertainty surrounding ongoing US–Iran peace deal discussions.
- SNB March Meeting Minutes flagged rising economic uncertainty, citing the Middle East conflict as a key inflation risk.
- The US Dollar Index gains support from safe-haven demand after Israel–Lebanon ceasefire violations.
USD/CHF moves little after two days of gains, trading around 0.7830 during the Asian hours on Friday. The pair steadies as traders adopt caution on uncertainty over US–Iran peace deal discussions.
March Meeting Minutes from the Swiss National Bank (SNB) highlighted rising uncertainty surrounding Switzerland’s economic outlook, with global developments, particularly the Middle East conflict, identified as key inflation risks.
Policymakers also noted that, amid elevated geopolitical tensions and safe-haven inflows, the SNB is likely to stay ready to intervene in FX markets to prevent an abrupt and excessive appreciation of the Swiss Franc that could threaten price stability.
The USD/CHF pair may regain its ground as the US Dollar Index (DXY) receives support from increased safe-haven demand following a CNN report that the Lebanese army recorded multiple ceasefire violations by Israel after the truce came into effect. US President Donald Trump announced on Thursday that Israel and Lebanon agreed to a 10-day ceasefire that started at 5 PM ET.
Lebanon accused Israel of carrying out “several acts of aggression,” noting that intermittent shelling has affected several villages in southern Lebanon. The army also urged residents to delay returning to southern towns and villages amid the reported ceasefire breaches.
Moreover, Washington and Tehran are expected to resume discussions over the weekend, with President Trump maintaining an optimistic tone on the chances that both sides could secure a lasting ceasefire before its expiration next week.
