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USD/CHF slumps to near 0.7960 as US Dollar weakens amid Mideast war de-escalation

  • USD/CHF declines to near 0.7960 as Middle East war de-escalation has diminished US Dollar’ safe-haven demand.
  • Iran is ready to end the war in return for a guarantee of no repetitive aggression.
  • Swiss Real Retail Sales rise 0.9% in February, as expected.

The USD/CHF pair is down 0.35% to near 0.7960 during the early European trading session on Wednesday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) declines further due to intensifying expectations of a ceasefire in the Middle East.

During the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.15% lower to near 99.70. The DXY also corrected sharply after posting a fresh 10-month high of 100.65 on Tuesday.

Mideast ceasefire hopes have increased as Iran has shown willingness to end the war for the first time since it started a month back. "We possess the necessary will to end this conflict, provided that essential conditions are met, especially the guarantees required to prevent repetition of the aggression," Iranian President Masoud Pezeshkian said on Tuesday, according to Euronews.

The statement from Iranian President Pezeshkia came after United States (US) President Donald Trump announced that Washington doesn’t intend to extend the war and is willing to end the same despite the Strait of Hormuz remaining closed.

On the macro front, investors await the US ADP Employment Change and the S&P Global and ISM Manufacturing PMI data for March, which will be published during the North American session. The employment data is expected to influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.

Meanwhile, the Swiss Franc (CHF) outperforms its major currency peers during the session. On the domestic front, Swiss Real Retail Sales data for February has arrived at 0.9%, as expected, after declining 0.6% in January, revised higher from -1.1%.

Swiss Franc Price Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.27%-0.40%-0.19%-0.11%-0.37%-0.19%-0.54%
EUR0.27%-0.13%0.09%0.18%-0.08%0.09%-0.27%
GBP0.40%0.13%0.23%0.31%0.04%0.23%-0.12%
JPY0.19%-0.09%-0.23%0.09%-0.16%-0.01%-0.33%
CAD0.11%-0.18%-0.31%-0.09%-0.25%-0.08%-0.43%
AUD0.37%0.08%-0.04%0.16%0.25%0.19%-0.16%
NZD0.19%-0.09%-0.23%0.00%0.08%-0.19%-0.35%
CHF0.54%0.27%0.12%0.33%0.43%0.16%0.35%

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 Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Sagar Dua

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.

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