- USD/CHF posts modest losses to around 0.9020 in Monday’s early European session.
- The rising bets of Fed rate cuts weigh on the US Dollar.
- The uncertainty and escalating tension boost safe-haven assets like the Swiss Franc
The USD/CHF pair trades with mild losses near 0.9020 during the early European session on Tuesday. The weaker US Dollar (USD) broadly drags the pair lower. Traders will take more cues from the US ISM Manufacturing PMI report, which is due later on Monday. On Friday, the attention will shift to the US ISM Manufacturing PMI data.
Meanwhile, the US Dollar Index ( DXY), a measure of the value of the USD against a basket of six foreign currencies, weakens to nearly 107.25. Traders continue to price in the chance that the US Federal Reserve (Fed) will cut interest rates by a quarter of a percentage point twice by the end of this year. This, in turn, weighs on the Greenback against the Swiss Franc (CHF).
Additionally, the uncertainty and escalating tension surrounding the Russia and Ukraine conflict could boost the safe-haven demand, benefiting the Swiss Franc (CHF). US President Donald Trump stated on the weekend that Ukrainian President Volodymyr Zelenskyy was disrespectful” and canceled the signing of a minerals deal that would have brought Ukraine closer to resolving its conflict with Russia. Investors will closely monitor the developments surrounding Russia’s headlines.
