US Dollar Strengthens Against Swiss Franc After Weak Industrial Data
The US dollar (USD) strengthened against the Swiss franc (CHF) in trading on Monday (August 18, 2025), reaching a high near 0.8072. This strengthening occurred following the release of disappointing Swiss industrial data, which added to concerns about a slowing Swiss economy. Furthermore, the US dollar also received support from growing investor caution ahead of the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy
The meeting has attracted market attention due to concerns that Trump will pressure Zelenskyy to accept Russian President Vladimir Putin's peace terms, which include the transfer of Ukrainian territory to Russia. Zelenskyy has previously rejected these terms, and European leaders participating in the meeting are not expected to agree. This geopolitical uncertainty has fueled risk-off sentiment, which has actually strengthened demand for the US dollar as a safe-haven asset.
Meanwhile, market expectations for a Fed interest rate cut in September remain high at around 84%, despite the strong US retail sales data last Friday. However, current geopolitical concerns are enough to support the dollar, although the market remains wary of the direction of US monetary policy.
Ahead of Fed Chairman Jerome Powell's key speech at Jackson Hole on Friday, some market participants have also begun to reduce their short positions on the US dollar. If Powell doesn't sound sufficiently dovish, this could reduce the chances of an interest rate cut and provide further support for the greenback. (ayu)
Source: Newsmaker.id
