USD/CHF sees more downside below 0.7800 as US-Iran talks to resume soon

USD/CHF trades vulnerably around 0.7800 as the US Dollar underperforms across the board.
US President Trump expresses confidence that the war with Iran is close to an end.
The US and Iran are expected to resume talks soon.

Sagar Dua FXStreet

The USD/CHF pair trades flat around 0.7812 during the late Asian trading session on Wednesday, but is still close to its monthly low of 0.7790 posted the previous day. The Swiss Franc pair faces selling pressure as the US Dollar (USD) underperforms its peers amid optimism that the United States (US) and Iran could reach a permanent ceasefire soon.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks higher to near 98.15, but is still close to its almost seven-week low of 98.00.

The optimism over the US-Iran permanent ceasefire is backed by positive commentary from US President Donald Trump, in an interview with Fox Business earlier in the day, that the war with Iran is close to an end. "I think it’s close to over, yeah. I view it as very close to being over,” Trump said. He also said to The New York Post on Tuesday that negotiations with Iran could resume in Pakistan in the next two days.

US Vice President (VP) JD Vance also said in a public event that talks with Iran are taking place via channels including Pakistan, will continue, as “both sides work toward a deal”.

Meanwhile, traders are no longer pricing in interest rate hikes by the Federal Reserve (Fed) this year, as inflation expectations have de-anchored due to US-Iran optimism, a sharp turnaround from two hike projections seen in March after the war started.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD drops to fresh weekly low below 1.3400

GBP/USD turns south in the second half of the day on Tuesday and trades at a fresh weekly-low below 1.3400 as the Middle East uncertainty causes investors to adopt a cautious stance. Earlier in the day, the data from the UK showed that the Unemployment Rate remained at 4.9% in the three months to May, compared with expectations of 5%, but failed to support the British Pound.

EUR/USD keeps range above 1.1400 after German ZEW

EUR/USD struggles to find direction and fluctuates in a narrow channel above 1.1400 on Tuesday, as the US Dollar (USD) stabilizes following Monday's rebound. The uncertainty around the US-Iran conflict limits the pair's upside but traders refrain from taking large positions ahead of the European Central Bank policy announcements on Thursday, which could drive the Euro's near-term valuation.

Gold clings to moderate gains above $4,050

Gold gains traction following Monday's choppy action and advances toward $4,100 on Tuesday. However, the uncertainty surrounding the conflict in the Middle East and growing expectations for a hawkish Federal Reserve policy outlook make it difficult for the precious metal to gather bullish momentum in the near term.

Bitcoin extends advance as ETF inflows, Iran war mediators' proposal lift risk mood

Bitcoin extends its gains, trading above $65,800 after closing above the key technical hurdle the previous day. The bullish price action is further supported by the return of institutional demand, with spot Exchange Traded Funds continuing their inflows on Monday. In addition, the renewed hopes for peace between the US and Iran have lifted risk sentiment, providing an additional tailwind for the Crypto King.

Buy the dip on the Dow Jones and S&P? Forex Trading Gold descending triangle

Trading during a war, a pandemic, during trade disputes, and other geopolitical events, especially when some major players are sociopathic, can be quite challenging. The Iran war is no exception. The Iran war is no exception.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.