USD/CHF falls below 0.8150 ahead of U.S. retail sales data
The USD/CHF pair dropped to around 0.8135 during early Tuesday trading in Europe. The Swiss franc gained strength as traders turned to safer assets due to ongoing tension between Israel and Iran. All eyes are now on the upcoming U.S. retail sales data for May, which will be released later today. This report is important because it comes just before the U.S. Federal Reserve announces its interest rate decision on Wednesday.
The rising geopolitical risks are keeping the Swiss franc strong. News of possible evacuations in Tehran and warnings from global leaders are pushing investors to buy safe-haven currencies like the franc. But if the situation becomes more stable, the franc might lose some strength, and the U.S. dollar could recover.
The Federal Reserve is expected to keep interest rates unchanged this week. However, traders believe there could be two rate cuts later this year, possibly starting in September, since inflation has slowed down. Everyone will be watching the Fed’s comments closely for clues about future decisions.
Impact: USD/CHF may stay weak if global tensions remain and U.S. sales data is poor. But a calmer outlook or strong retail numbers could help the dollar bounce back.