- USD/CHF appreciates as safe-haven demand increases due to the Middle East war.
- ISM Manufacturing PMI eased to 52.4 in February from 52.6, beating 51.8 expectations.
- Swiss Franc weakens on expectations that the Swiss National Bank will maintain an accommodative stance.
USD/CHF gains ground for the second successive session, trading around 0.7810 during the Asian hours on Tuesday. The pair advances as the US Dollar (USD) strengthens on heightened safe-haven demand amid the Middle East war.
President Donald Trump said the “big wave” of strikes against Iran in the ongoing conflict is still to come. Marco Rubio added that the US is preparing for a “major uptick” in attacks on Iran over the next 24 hours. The US and Israel have reportedly struck thousands of targets inside Iran, extending their joint campaign.
A Reuters report cited Ebrahim Jabari, senior adviser to the commander-in-chief of the Islamic Revolutionary Guard Corps, as saying: “The Strait of Hormuz is closed. If anyone tries to pass, the Revolutionary Guards and the regular navy will set those ships ablaze.”
On the data front, the Institute for Supply Management Manufacturing PMI eased to 52.4 in February from 52.6 in January, but exceeded expectations of 51.8. The Manufacturing Employment Index improved to 48.8 from 48.1, though it remained in contraction.
Meanwhile, the USD/CHF pair climbs as the Swiss Franc (CHF) weakens on expectations that the Swiss National Bank will maintain an accommodative policy stance. Swiss inflation held steady at 0.1% YoY in January, matching December’s reading and staying at the lower bound of the SNB’s 0%–2% price stability range.
