Dollar vs. Franc: Is the Safe Haven Starting to Fade?
The Swiss franc also came into the spotlight at the start of the week, as global markets began to take more risks. In the European session on Monday (February 9th) at 09:41 GMT, the USD/CHF pair was around 0.776, with a daily change of around -0.31%.
This movement was driven by a major trend: the dollar was under pressure after speculation about the Fed's policy direction intensified, especially since Kevin Warsh's name was increasingly associated with a more "pro-strong dollar" approach and a reluctance to give room for aggressive cuts. The market became more sensitive to any headlines that touched on interest rates, the dollar, and yields.
The franc usually strengthens when the market panics, but when the mood turns risk-on, its safe-haven appeal often diminishes. Signals of optimism regarding the US-Iran diplomatic path also made some market players feel that tensions were easing—ultimately reducing demand for safe assets.
At the same time, the weakening of precious metals is often interpreted in Switzerland, as it is a key gold processing hub. When gold falls and the market calms down, the "psychological support" for the franc usually diminishes.
In conclusion, the franc is being carried by two currents: sensitive dollar headlines and improving risk sentiment. So as long as the market remains preoccupied with the Fed/Warsh situation and geopolitics calms down, USD/CHF can remain volatile—easily changing direction on the back of a single headline.
Source: Newsmaker.id
