USD/CHF Steady, Dollar's Safe Haven Competes with Franc's Appeal
USD/CHF moved slightly after two days of gains, trading around 0.7830 during the Asian session on Friday (April 17) and holding near 0.7850. This movement is considered relatively flat, reflecting a more cautious market stance amid uncertainty surrounding the US-Iran peace talks, which are expected to continue over the weekend.
From Switzerland, the minutes of the Swiss National Bank (SNB) March meeting highlighted increasing uncertainty in the economic outlook, with global developments, particularly the conflict in the Middle East, identified as a major risk to inflation. This assessment maintains market sensitivity to changes in risk sentiment and energy price movements.
SNB policymakers also emphasized that amid geopolitical tensions and safe haven flows, the central bank likely remains ready to intervene in the foreign exchange market. The goal is to prevent abrupt and excessive appreciation of the Swiss franc, which could disrupt price stability.
Meanwhile, the US dollar received support from safe haven demand after a CNN report reported that the Lebanese military recorded several ceasefire violations by Israel after the ceasefire came into effect. US President Donald Trump previously announced that Israel and Lebanon had agreed to a 10-day ceasefire starting Thursday at 5:00 PM ET, but claims of violations have kept uncertainty high.
Going forward, the direction of the USD/CHF is likely to be determined by two competing forces: dollar support from risk-off and geopolitical headlines, versus the potential strengthening of the franc as a safe haven, which could trigger sensitivity to SNB intervention. The market will be monitoring developments in Washington-Tehran negotiations, the dynamics of the Israel-Lebanon ceasefire, and the SNB's signals regarding its tolerance for franc appreciation. (asd)
Source: Newsmaker.id
