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Swiss franc weakens as safe-haven demand lifts USD/CHF

USD/CHF traded near 0.8310 during Asian hours as markets increased the odds the Fed keeps rates steady, after weaker US employment data.

Reported · Written up by our desk · Major Pairs

USD/CHF rose after two sessions of declines, trading around 0.8310 during Asian hours on Monday, according to FXStreet.

The move was driven by a strengthening US dollar amid rising safe-haven demand tied to deteriorating geopolitical conditions in the Middle East, including fighting involving forces in Yemen and the Bab el-Mandeb strait.

FXStreet also linked the dollar support to softer-than-expected US employment figures, noting that markets are now pricing in a nearly 77.9% chance the Fed will keep benchmark interest rates steady at its upcoming policy meeting, up from 74% before the labor report.

The outlet added that this repricing follows September Nonfarm Payrolls expanding by only 29,000 positions, which it said fell well short of expectations and shifted sentiment toward a more cautious Fed stance.

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