USD/CHF

USD/CHF starts the week on a positive note, snapping a two-day losing streak as broad US Dollar (USD) strength and a wide interest rate differential between the Federal Reserve (Fed) and the Swiss National Bank (SNB) keep the Swiss Franc (CHF) under persistent selling pressure.

• Monetary policy divergence and yield spreads favor the U.S. dollar over the franc. • Rising oil prices reinforce U.S. inflation risks and sustain Federal Reserve policy restraint. • Technical indicators show neutral MACD, neutral RSI, and a buy signal on Williams %R.

The Swiss Franc (CHF) has turned lower on Monday and is retracing gains from the previous two trading days against the US Dollar, as tensions in the Middle East and a highly likely failure of the Russia-Ukraine ceasefire deal are dampening risk appetite.

USD/CHF gains ground after two days of losses, trading around 0.8310 during Asian hours on Monday. The currency pair is finding upward support as the Swiss Franc (CHF) remains under pressure from short positions.

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann note that USD/CHF shows slightly increased downside momentum, with scope to test 0.8290 but limited odds of a sustained break lower. For the coming days, they maintain that USD/CHF has likely entered a range-trading phase between 0.8245 and 0.8365, while over the 1–3 month horizon they see the pair continuing to rebound but lacking strength to revisit the July peak.

The US Dollar (USD) extends losses for the second consecutive day against the Swiss Franc (CHF) on Friday as some easing on the global bond rout has triggered a mild risk appetite, sending the US Dollar lower across the board.