US Dollar Strengthens, USD/CHF Holds Key Area
The USD/CHF currency pair moved steadily near 0.7950 in late Asian trading on Thursday. This movement continued the recovery that began on Wednesday, after a sharp correction on January 19-20.
This strengthening was supported by increased buying interest in the US dollar following US President Donald Trump's speech at the World Economic Forum (WEF) in Davos. At the same time, the US Dollar Index (DXY) traded firmly around 98.80, near the previous day's high.
Trump stated that the United States would not use military action or threaten tariffs against the European Union over the Greenland issue. He also announced the elimination of 10% tariffs on several EU countries and the UK after a meeting with NATO Secretary General Mark Rutte, and stated that a framework for a "future agreement" regarding Greenland and the Arctic region had been reached.
The easing of geopolitical and trade tensions between the US and the EU has boosted investor risk appetite. This fueled a rally in global markets, as evidenced by the S&P 500 futures contract, which rebounded and continued its gains from the previous session.
Meanwhile, the Swiss franc moved relatively calmly but tended to weaken against the Australian and New Zealand dollars. Swiss National Bank Chairman Martin Schlegel stated that negative inflation is likely this year, but assessed that a few months of negative inflation would not be a major problem for the Swiss economy. (az)
Source: Newsmaker.id
