USD/CHF Slips: CHF Increasingly Sought After, US Again "Busy"
USD/CHF fell to around 0.7650 in early European trading on Thursday. The US dollar weakened as markets returned to safe havens, while the Swiss Franc (CHF) found support from various emerging risks. Market participants now await the release of the Swiss December Trade Balance and the US weekly Initial Jobless Claims data.
One trigger is concerns about a partial US government shutdown. Funding for several federal agencies could potentially end after January 30, increasing the risk of a shutdown this weekend. At the same time, the issue of the Federal Reserve's independence and the political tug-of-war in Washington have also weighed on sentiment towards the USD.
From a geopolitical perspective, US-Iran tensions have also put the market on the defensive. A US aircraft carrier and support vessels have reportedly arrived in the Middle East, while Trump is urging Iran to negotiate immediately. Amid this situation, the Fed recently kept interest rates on hold and emphasized a cautious stance, which could curb the USD's decline in the short term—but in the meantime, the CHF remains in the spotlight as a safe-haven currency. (az)
Source: Newsmaker.id