The USD/CHF currency pair extended its losing streak for the third consecutive day, trading around 0.8470 during the Asian trading session on Tuesday. This decline is attributed to increasing safe-haven demand for the Swiss Franc (CHF), driven by heightened geopolitical tensions in the Middle East.
Recent developments include Hamas rejecting new ceasefire conditions proposed by Israel during negotiations in Egypt, insisting that Israel adhere to the terms set by US President Joe Biden and the UN Security Council. Despite these tensions, US Air Force General C.Q. Brown, Chairman of the Joint Chiefs of Staff, indicated to Reuters that fears of an imminent broader conflict in the region have lessened. Additionally, recent exchanges of fire between Israel and Hezbollah did not escalate further.
On the domestic front, US Federal Reserve Chairman Jerome Powell’s comments at the Jackson Hole Symposium on Friday suggested a forthcoming adjustment in policy, though he did not specify the timing or magnitude of potential rate cuts. Market expectations, as indicated by the CME FedWatch Tool, anticipate at least a 25 basis point rate cut by the Fed at its September meeting.
In Switzerland, Non-Farm Payrolls for the second quarter showed a 1.3% year-on-year increase, reaching a record 5.499 million, following a 1.8% rise in the previous quarter. Employment growth was noted across all sectors, with the industrial sector increasing by 0.7% to 1.134 million and the services sector rising by 1.4% to 4.365 million.
Despite these positive labor market indicators, speculation about further interest rate cuts by the Swiss National Bank (SNB) remains subdued. Traders are expected to pay close attention to the Swiss ZEW Survey – Expectations for August, set for release on Wednesday, which may provide further insights into market sentiment.
Related Topics:
- Current CHF Exchange Rate: 100 Swiss Franc in Naira
- Current CHF Exchange Rate: 100 CHF in EUR
- Current CHF Exchange Rate: 10,000 CHF to USD
