Swiss Franc declines as market caution lifts USD
Finance Swiss Franc declines as market caution lifts USD USD/CHF edges higher after registering modest losses in the previous day, trading around 0.7840 during the Asian hours on Friday. The pair caught in a tug-of-war between lingering geopolitical risks in the Middle East and stronger-than-expected economic data from Switzerland. Analysts at MUFG Bank have warned that the US Dollar (USD) could appreciate if Washington and Tehran fail to finalize a ceasefire extension. An unresolved conflict threatens to build global inflationary pressures, a scenario that could push US Treasury yields higher and shift the Federal Reserves (Fed) internal consensus toward a more hawkish monetary policy stance to combat rising prices. While the United States (US) and Iran have tentatively agreed to a 60-day ceasefire extension, the markets initial relief remains capped. The potential breakthrough promises to allow unrestricted shipping through the critical Strait of Hormuz, with Iran reportedly committing to clear all maritime mines from the waterway within 30 days. However, traders are maintaining a cautious stance following a CNN report that US President Donald Trump has yet to approve the final terms. Further dampening immediate optimism, Vice President JD Vance noted that Washington was “not there yet” on a final deal, despite being close, while