USD/CHF making ground from the risk-off 0.9865 lows to 0.99 handle
|- USD/CHF is trading at 0.9927 currently, higher by 0.28%.
- Staying tuned in on the geopolitical implications of the Saudi attack and how the U.S. and Chinese trade talks.
USD/CHF is trading at 0.9927 currently, higher by 0.28% following a spike in the Dollar despite the risk-off mood. USD/CHF had started out on the back foot down to a low of 0.9865 on a bearish gap following news of the attack of the Saudi oil facility.
On the back of the news the NOK, CAD, JPY and CHF were at the top of the leader-board but the Dollar has driven the Yen and CHF back again. For further appreciation on the Yen and CHF, we will need to stay tuned in on the geopolitical implications of the Saudi attack and how the U.S. and Chinese trade talks are going to play out.
Eyes in the geopolitics
"Of specific concern is whether there will be any further deterioration in the relationship between the US and Iran as a consequence of the attack on Saudi Arabid. Secretary of State Pompeo appeared to be pointing the finger at Tehran at the weekend,"
analysts at Rabobank argued.
Meanwhile, following the European Central Bank meeting, the Swiss National Bank Bank refused to comment and there has been very little in the way of reporting on the matter at hand. The SNB will wish for the CHF to weaken but the given that the ECB did not overdo it, and left the door open for further adjustments down the line, the SNB will be somewhat relieved, for now. Therefore, the Bank may choose to forgo an interest rate cut, and instead, resort to interventions to offset the franc’s rise in the case of risk-off flows. However, the decisions taken by the Trump Administration in relation to trade with China and with respect to Iran are likely to have significant implications for safe have assets which could either support or counter the SNB's efforts.
USD/CHF levels
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