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USD/CHF slides for a third day as safe-haven demand fades
The franc is bolstered by weaker USD demand after Iran and Oman moved toward a Strait of Hormuz shipping-route deal, while US jobs data has offered a mild negative for the dollar.
FXStreet reports that USD/CHF extended losses for a third straight day, trading around 0.8060 in Asian hours on Thursday as the US dollar faced headwinds from softer safe-haven demand.
The outlet links the risk tone to reporting that Iran and Oman reached an agreement on a shipping route through the Strait of Hormuz, which boosted expectations for increased Middle Eastern energy flows, though the proposed route is expected to run for two to four months and Tehran said it is not a full reopening of the waterway.
Scotiabank strategists cited recent US employment releases that point to a labor market described as “tight but not necessarily adding to inflation pressure,” calling that a mild negative for the USD. ADP data showed US private-sector employment added 44K jobs in July, down from 98K in June and below consensus, while traders looked ahead to Thursday’s US Initial Jobless Claims and Friday’s Nonfarm Payrolls.
The article also notes that Fed messaging has been mixed, with San Francisco Fed President Mary Daly delivering a moderately cautious tone, and the FXS Fed Sentiment Index falling by 2.23 points to 138.69. Separately, Swiss inflation dipped to a four-month low of 0.4% in July, down from 0.5%.