|

USD/CHF weakens for a second day on improved risk sentiment, firmer Swiss inflation

  • USD/CHF loses ground for a second consecutive day as market sentiment improves.
  • Hopes of a deal between Washington and Tehran weaken the US Dollar and support risk assets.
  • Swiss inflation accelerates in April, supporting the Swiss Franc despite expectations of an SNB hold.

USD/CHF declines around 0.7790 on Wednesday at the time of writing, down 0.50% on the day, as the US Dollar (USD) remains under pressure in a more risk-positive market environment.

The pair’s decline comes amid growing optimism surrounding a potential agreement between the United States (US) and Iran. According to Axios, Washington and Tehran are moving closer to a memorandum of understanding that would provide a framework for future nuclear negotiations. This prospect is reducing demand for safe-haven flows linked to the US Dollar.

US Defense Secretary Pete Hegseth said that the ceasefire implemented nearly a month ago remains in place, while Secretary of State Marco Rubio stated that US offensive operations have ended. US President Donald Trump also announced a temporary pause in operations aimed at escorting vessels through the Strait of Hormuz to assess the chances of reaching a deal with Iran.

However, Trump warned on Wednesday that “if Iran does not agree to the deal, the bombing will resume at a much higher level,” limiting the improvement in market sentiment.

On the macroeconomic front, the ADP Employment Change report showed that the US private sector added 109K jobs in April, above market expectations of 99K. Despite the stronger-than-expected release, the US Dollar remains weakened by the improvement in risk appetite.

In Switzerland, data released on Wednesday showed that annual inflation accelerated to 0.6% YoY in April from 0.3% in March, slightly above the Swiss National Bank’s (SNB) average annual projection of 0.5%. The increase was mainly driven by higher energy costs following tensions in the Middle East.

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 Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.55%-0.55%-1.08%-0.07%-0.78%-1.25%-0.52%
EUR0.55%-0.01%-0.50%0.49%-0.23%-0.73%0.03%
GBP0.55%0.01%-0.51%0.51%-0.22%-0.71%0.06%
JPY1.08%0.50%0.51%1.01%0.29%-0.20%0.59%
CAD0.07%-0.49%-0.51%-1.01%-0.71%-1.20%-0.43%
AUD0.78%0.23%0.22%-0.29%0.71%-0.48%0.27%
NZD1.25%0.73%0.71%0.20%1.20%0.48%0.76%
CHF0.52%-0.03%-0.06%-0.59%0.43%-0.27%-0.76%

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.

More from Ghiles Guezout
Share:

Editor's Picks

AUD/USD bulls seem hesitant below 0.7050 ahead of RBA on Tuesday

AUD/USD reverses an Asian session dip on Monday as renewed optimism over Iran diplomacy boosts investor confidence, keeping a lid on the safe-haven US Dollar and supporting the risk-sensitive Aussie. Spot prices, however, remain below the one-month high, touched last Thursday, as bulls wait for the crucial RBA decision before taking fresh positions.



USD/JPY climbs to 158.00 neighborhood as BoJ uncertainty weighs on the JPY

The USD/JPY pair gains some positive traction at the start of a new week, recovering further from Friday's post-Bank of Japan (BoJ) swing low to sub-157.00 levels. The momentum lifts spot prices to the 158.00 neighborhood during the Asian session and seems unaffected by fresh intervention warning from Japan's Finance Minister Satsuki Katayama.

Gold trims intraday gains; trades below $3,900 as Fed hike bets counter weak USD

Gold trims part of its modest intraday gains, trading with a mild positive bias below the $3,900 mark during Monday’s early European session. The US Dollar attracts fresh sellers amid optimism over a potential diplomatic breakthrough to end the US-Iran war and offers some support to the commodity. Meanwhile, US Federal Reserve rate-hike bets remain firmly on the table amid energy-driven inflation concerns, keeping the non-yielding yellow metal near the October 2025 low touched on Friday.

Dogecoin risks deeper slide as whales diverge

Dogecoin hovers around $0.075 on Monday after falling for the fifth consecutive week since the end of September. Santiment data shows diverging whale activity, as large holders reduce their positions while smaller whale wallets accumulate tokens. Meanwhile, weakening on-chain metrics and a deteriorating technical outlook suggest that DOGE could remain vulnerable to further losses.

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.