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Swiss franc gains as dollar steadies, attention turns to Iran
USD/CHF was around 0.8026, up about 0.20% on the day, after the dollar stabilized following Treasury moves to boost longer-dated bond buybacks.
FXStreet said USD/CHF edged higher Monday as the US dollar steadied after last week’s sell-off, which was linked to a US Treasury announcement to increase longer-dated bond buybacks. At the time of writing, the pair traded around 0.8026, up roughly 0.20% for the day.
The outlet noted that market attention shifted back to US-Iran tensions after Washington unveiled a fresh sanctions campaign against Tehran. US Treasury Secretary Scott Bessent launched “Operation Economic Outcast,” expanding the scope of secondary sanctions on entities and countries that transact with Iran, and the Treasury sanctioned about 60 Iran-linked individuals, entities, and vessels tied to the country’s nuclear, missile, cyber and oil networks.
FXStreet added that Iran warned the tougher pressure could raise the risk of a wider confrontation, including a threat to halt oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf. The article said geopolitical tensions are keeping a floor under the dollar, though upside appears limited.
Looking ahead, FXStreet pointed to Wednesday’s US Personal Consumption Expenditures, or PCE, Price Index as a key inflation signal. It also cited softer US employment and inflation data for July as dampening expectations of a near-term Fed rate hike, while noting Fed Chair Kevin Warsh is scheduled to speak at Jackson Hole on Friday.