USD/CHF climbs to near 0.9050 amid diminished geopolitical tension in Middle East

USD/CHF edges higher as US Dollar improves on reduced chances of a Fed rate cut in June.
The de-escalated tension in the Middle East could weaken the demand for safe-haven CHF.
Higher US Treasury yields are contributing support for the Greenback.

Akhtar Faruqui FXStreet

USD/CHF gains ground for the second consecutive session on Monday, advancing to near 0.9050 during the European trading hours. Israel's decision to withdraw additional troops from Southern Gaza, possibly due to growing international pressure, has contributed to easing tensions. Additionally, peace talks between Israel and Hamas have resumed in Egypt, reducing concerns that may weaken demand for the safe-haven Swiss Franc (CHF).

In other news, the Swiss Unemployment Rate, not seasonally adjusted, increased by 2.3% month-on-month in March, slightly higher than the previous rise of 2.2%. The unemployment rate stood at 2.4% in March 2024, unchanged from the previous month on a non-seasonally adjusted basis.

At the time of writing, the US Dollar Index (DXY) trades higher around 104.30, propelled by a surprising beat in the Nonfarm Payrolls (NFP) report. The strong labor market performance in March, exceeding expectations, has reinforced bullish sentiment for the US Dollar.

The NFP reported a significant increase of 303,000 jobs in March, surpassing expectations of 200,000. However, the previous growth of 275,000 was revised downward to 270,000. Additionally, US Average Hourly Earnings rose by 0.3% month-over-month in March, meeting expectations. On an annual basis, there was an increase of 4.1%, aligning with the market consensus but slightly lower than the prior reading of 4.3%.

According to the CME FedWatch Tool, the probability of a rate cut has decreased to 46.1%. Traders are now eagerly awaiting the release of US Consumer Price Index data for March, scheduled for Wednesday.

USD/CHF

Overview
Today last price	0.9046
Today Daily Change	0.0026
Today Daily Change %	0.29
Today daily open	0.902

Trends
Daily SMA20	0.8944
Daily SMA50	0.8837
Daily SMA100	0.8742
Daily SMA200	0.882

Levels
Previous Daily High	0.9071
Previous Daily Low	0.8998
Previous Weekly High	0.9096
Previous Weekly Low	0.8998
Previous Monthly High	0.9072
Previous Monthly Low	0.873
Daily Fibonacci 38.2%	0.9043
Daily Fibonacci 61.8%	0.9026
Daily Pivot Point S1	0.8989
Daily Pivot Point S2	0.8957
Daily Pivot Point S3	0.8916
Daily Pivot Point R1	0.9062
Daily Pivot Point R2	0.9103
Daily Pivot Point R3	0.9135

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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