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USD/CHF rises for sixth day as risk sentiment improves, SNB stance weighs on Franc

  • USD/CHF posts a sixth consecutive day of gains, approaching 0.8005.
  • Improved market sentiment follows comments from Donald Trump suggesting de-escalation with Iran.
  • The Swiss Franc remains under pressure after the SNB reiterated its willingness to counter excessive currency appreciation.

USD/CHF advances on Tuesday, rising 0.12% to trade near 0.8005 at the time of writing, extending a six-day winning streak. The pair is supported by a slight advantage for the US Dollar (USD) and relative weakness in the Swiss Franc (CHF) amid improving global risk appetite.

Market sentiment improved after a report by the Wall Street Journal indicated that US President Donald Trump is willing to seek a peace agreement with Iran. According to the report, Washington may consider ending its military campaign even if the Strait of Hormuz remains largely closed, opting for diplomatic solutions over a prolonged military effort to reopen the strategic waterway.

This prospect of de-escalation in the Middle East has supported risk assets globally. S&P 500 futures are rising by around 1%, moving back above the 6,400 level, reflecting stronger investor sentiment after several days of geopolitical concerns.

At the same time, Oil prices are correcting sharply as fears over energy supply disruptions ease. The decline could reduce expectations of energy-driven inflation, which had previously strengthened bets on a more hawkish stance from the Federal Reserve (Fed).

On the monetary policy front, Fed Chair Jerome Powell dampened expectations of an imminent interest rate hike on Monday, stating that inflation pressures remain contained for now. His remarks pushed US Treasury yields lower and limited the upside potential of the US Dollar (USD).

Meanwhile, the Swiss Franc (CHF) is edging lower against most of its major peers. The currency remains weighed down by the stance of the Swiss National Bank (SNB), which recently reiterated its readiness to intervene if necessary to prevent excessive appreciation of the CHF, a position that continues to pressure the Swiss currency.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.06%-0.11%0.03%0.14%0.02%0.33%0.18%
EUR-0.06%-0.15%0.00%0.13%-0.00%0.32%0.17%
GBP0.11%0.15%0.15%0.29%0.16%0.47%0.33%
JPY-0.03%0.00%-0.15%0.12%-0.01%0.31%0.18%
CAD-0.14%-0.13%-0.29%-0.12%-0.13%0.20%0.05%
AUD-0.02%0.00%-0.16%0.00%0.13%0.33%0.17%
NZD-0.33%-0.32%-0.47%-0.31%-0.20%-0.33%-0.16%
CHF-0.18%-0.17%-0.33%-0.18%-0.05%-0.17%0.16%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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