USD/CHF Strengthens, US-Iran and Fed Stalemate Lift Dollar
USD/CHF rose on Tuesday (April 28th) as risk-off sentiment persisted amidst the lack of progress in US-Iran efforts to end the war, keeping the dollar in demand despite the Swiss franc's safe-haven status. The USD/CHF pair traded around 0.7895, up 0.50%, in line with the DXY, which rose 0.20% to 98.68.
Market focus returned to geopolitics after President Donald Trump said Iran was in a "state of collapse" and wanted the Strait of Hormuz opened as soon as possible. Iran reportedly proposed a plan to reopen Hormuz and end the war, but postponed nuclear negotiations to a later stage—a format Washington finds difficult to accept as the nuclear issue remains a key sticking point. As long as Hormuz remains disrupted, oil prices remain high and inflation risks are kept at bay, so markets tend to delay expectations of a Fed interest rate cut—providing additional support for the dollar through yields.
The next focus is on the Fed's decision on Wednesday, which is expected to hold interest rates at 3.75%–4.50%, with the market closely monitoring Fed Chairman Jerome Powell's tone regarding future policy direction. Data showed the four-week ADP moving average weakened to 39.25,000 from 40.25,000, while the Conference Board Consumer Confidence index rose to 92.8 (above expectations of 89), indicating that domestic demand remains quite resilient—a factor that could strengthen the "higher for longer" argument and keep USD/CHF bid. (Arl)
Source: Newsmaker.id
