USD/CHF Strengthens As US Dollar Demand Increases
The USD/CHF pair extended its recovery to around 0.9030 during the early European session on Tuesday (2/18), supported by a stronger US dollar (USD). Investors are gearing up for the release of the NY Empire State Manufacturing Index for February, due later on Tuesday. Also, the Federal Reserve’s (Fed) Mary Daly is scheduled to speak later in the day.
Last week’s data showed US consumer prices rose at the fastest pace in almost 18 months in January, highlighting the Fed’s message that it is in no hurry to cut interest rates further despite rising economic uncertainty. This, in turn, continues to support the greenback in the near term. “An extended pause during the first half of the year appears justified and will give the Fed time to assess the impact of its trade-offs on inflation,” ANZ strategists said.
Israeli warplanes launched airstrikes on the villages of Tayr Harfa and Aaichiyehin in Jezzine district on Monday night, as well as two explosions in the border town of Odaisseh in Marjayoun district, ending a ceasefire in southern Lebanon before leaving the region, according to Anadolu Agency.
Investors will be closely monitoring developments surrounding geopolitical tensions in the Middle East. Any sign of escalation in the region could boost safe-haven currencies such as the Swiss Franc (CHF) and create headwinds for the pair. (ads)
Source: FXStreet
