USD/CHF Rises Slightly, Dollar Gets "Factor" from Warsh
USD/CHF strengthened in Thursday's European session, holding around 0.7780. This gain was slight—around +0.08% today—but enough to indicate the US dollar still finds support after the Fed leadership change issue returned to the spotlight.
The main driver came from the market's psychological impact on Kevin Warsh's nomination as Federal Reserve Chair, which some market participants interpreted as a signal that rate cuts could be slower than other candidate scenarios. The dollar was briefly supported by expectations of higher/tighter interest rates, which tended to lift the greenback.
However, this sentiment is not yet fully solidified. Trump's recent statements regarding interest rate preferences have also kept the market closely monitoring the Fed's independence issue, so the dollar is still considered to have room for short-term fluctuations.
Regarding the Swiss franc, market focus is also shifting to geopolitics. US-Iran nuclear negotiations are confirmed to take place in Muscat, Oman, on Friday, which could potentially ease tensions if the outcome is constructive. If geopolitical risks subside, safe-haven assets like the CHF could lose some of their appeal—and that could keep USD/CHF "up" for a while.
However, the bottom line: USD/CHF is currently rising not because of a single strong catalyst, but rather a combination of "temporary support" from the Fed + Warsh theme and hopes for US-Iran diplomacy. As long as the Fed's independence and geopolitical risks remain unclear, the pair's movement remains prone to fluctuations within a narrow range. (asd)
Source: Newsmaker.id
