- USD/CHF rises as the US Dollar strengthens on safe-haven demand amid persistent uncertainty over US–Iran talks.
- President Trump said Vice President Vance will leave Monday for Pakistan to resume negotiations.
- Traders expect SNB policymakers ready to intervene in FX markets to curb excessive Swiss Franc appreciation.
USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7790 during the Asian hours on Tuesday. The pair gains ground as the US Dollar (USD) receives support from increasing risk aversion, driven by persistent uncertainty surrounding US–Iran ceasefire negotiations. Traders assess ongoing geopolitical tensions in the Middle East as the 14-day ceasefire deadline approaches.
Bloomberg reported that US President Donald Trump stated that US Vice President JD Vance is leaving later on Monday for Pakistan to resume negotiations, “either Tuesday night or Wednesday morning.” Iran is also sending a team, although it is unclear who would lead the delegation.
President Donald Trump has issued mixed signals earlier on the Iran war, saying he is not rushing to end it while expressing optimism about renewed talks with Tehran ahead of Wednesday’s ceasefire expiry.
However, the upside of the USD/CHF pair could be limited as the Swiss Franc (CHF) may find support from safe-haven inflows. Additionally, the CHF may also gain ground as rising concerns over a prolonged energy-driven inflation shock reinforce expectations of a more hawkish Swiss National Bank (SNB). Meanwhile, SNB meeting minutes from March highlighted growing uncertainty surrounding Switzerland’s economic outlook.
Market participants expect the SNB to intervene in FX markets to curb a rapid and excessive appreciation of the Swiss Franc. Traders await Swiss Trade Balance data due later in the day.
