USD/CHF weakens on rising safe-haven demand
USD/CHF moved lower after posting gains in the previous session, trading around 0.8170 during Asian hours on Monday. The currency pair depreciated as the Swiss Franc (CHF) gained support from rising safe-haven demand, fueled by the United States’ (US) attack on three Iranian nuclear facilities over the weekend.
US President Donald Trump announced late Saturday that he had “obliterated” Iran’s key nuclear sites, including Fordow, Natanz and Isfahan, in overnight strikes coordinated with Israel. The Middle East conflict is set to escalate as Tehran vows to defend itself.
Last week, data showed that Switzerland’s trade surplus fell to CHF 2.0 billion in May from a downwardly revised CHF 5.4 billion in April. Switzerland’s trade balance has posted its smallest surplus since December 2023. Traders will likely be watching the ZEW Survey – Expectations for June and the SNB’s Quarterly Bulletin for the second quarter, due to be released on Wednesday.
In the United States (US), Federal Reserve (Fed) Chairman Christopher Waller noted on Friday that the US central bank could start easing monetary policy as early as next month, signaling flexibility amid global economic uncertainty and rising geopolitical risks. However, Fed Chairman Jerome Powell previously warned that ongoing policy uncertainty would keep the central bank on hold, and any rate cuts would depend on further improvement in employment and inflation data.
Source: FXStreet
