USD/CHF holds below 0.8950 amid Middle East geopolitical risks

USD/CHF trades on a weaker note near 0.8925 in Tuesday’s early Asian session.
Fed policymakers retain a cautious approach to rate cuts, emphasizing that their decisions would be data-dependent.
The Swiss Franc is supported by the escalating geopolitical tensions in the Middle East and Ukraine.

Lallalit Srijandorn FXStreet

The USD/CHF pair weakens around 0.8925 on Tuesday during the early Asian trading hours. The downtick of the pair is backed by a weaker US Dollar (USD) broadly. Investors will keep an eye on the Swiss SNB Quarterly Bulletin for the second quarter (Q2) on Wednesday. On the US docket, the final reading of the US Gross Domestic Product (GDP) for Q1 on Thursday, and the May Personal Consumption Expenditure (PCE) Price Index for May on Friday will be the highlights this week.

The US Federal Reserve (Fed) policymakers retain a cautious approach to rate reduction, emphasizing that their decisions would be data-dependent. On Monday, San Francisco Fed President Mary Daly said that the Fed must continue its efforts to restore price stability without a painful disruption to the economy. Daly noted that although the central bank still has "more work to do" to temper inflation, it is not the only risk they face.

According to the CME FedWatch Tool, traders are now pricing in a nearly 66% chance of the Fed rate cut in September, up from 59.5% at the end of last week. The speeches from the Fed’s Lisa Cook and Michelle Bowman later on Tuesday might offer some hints about the interest rate trajectory this year. The hawkish comments from the Fed policymakers could lift the Greenback and cap the downside for USD/CHF.

On the other hand, the ongoing geopolitical tensions in the Middle East and Ukraine might boost the safe-haven flows, which benefit the Swiss Franc (CHF). Israeli Prime Minister Benjamin Netanyahu stated that the most intense phase of the attack against Hamas in Gaza is close to ending while stressing the broader war against Hamas wages on, according to CNN. Additionally, Russia has condemned the US for a "barbaric" strike in Crimea, which used US-provided missiles, killing at least four people, including children, and injuring 151 others.

USD/CHF

Overview
Today last price	0.8923
Today Daily Change	-0.0006
Today Daily Change %	-0.07
Today daily open	0.8929

Trends
Daily SMA20	0.8953
Daily SMA50	0.9045
Daily SMA100	0.8969
Daily SMA200	0.8892

Levels
Previous Daily High	0.8944
Previous Daily Low	0.8922
Previous Weekly High	0.8945
Previous Weekly Low	0.8827
Previous Monthly High	0.9225
Previous Monthly Low	0.8988
Daily Fibonacci 38.2%	0.893
Daily Fibonacci 61.8%	0.8936
Daily Pivot Point S1	0.8919
Daily Pivot Point S2	0.8909
Daily Pivot Point S3	0.8896
Daily Pivot Point R1	0.8942
Daily Pivot Point R2	0.8954
Daily Pivot Point R3	0.8964

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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