USD/CHF remains elevated above 0.7800 as the US Dollar strengthens amid increased risk-off sentiment
USD/CHF Rises for Second Day Amid Geopolitical Tensions
During Tuesday's Asian trading session, the USD/CHF currency pair continued its upward momentum for a second consecutive day, hovering near 0.7810. This movement is largely attributed to the US Dollar's (USD) increased appeal as a safe-haven asset, driven by escalating conflict in the Middle East.
Former President Donald Trump remarked that a significant escalation of strikes against Iran is imminent. Additionally, Marco Rubio indicated that the United States is bracing for a substantial increase in attacks targeting Iran within the next day. Reports suggest that the US and Israel have already targeted thousands of sites within Iran as part of their ongoing coordinated operations.
According to Reuters, Ebrahim Jabari, a senior advisor to the commander-in-chief of the Islamic Revolutionary Guard Corps, declared: “The Strait of Hormuz is closed. Any attempt to cross will result in the Revolutionary Guards and the navy setting those vessels on fire.”
On the economic front, the Institute for Supply Management's Manufacturing PMI slipped slightly to 52.4 in February from 52.6 in January, yet still surpassed the forecast of 51.8. The Manufacturing Employment Index edged up to 48.8 from 48.1, though it continues to indicate contraction in the sector.
Meanwhile, USD/CHF is advancing as the Swiss Franc (CHF) loses ground, influenced by expectations that the Swiss National Bank will persist with its accommodative monetary policy. Swiss inflation remained unchanged at 0.1% year-on-year in January, mirroring December’s figure and staying at the lower end of the SNB’s 0%–2% target range for price stability.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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