USD/CHF weakens for a second day on improved risk sentiment, firmer Swiss inflation
- USD/CHF loses ground for a second consecutive day as market sentiment improves.
- Hopes of a deal between Washington and Tehran weaken the US Dollar and support risk assets.
- Swiss inflation accelerates in April, supporting the Swiss Franc despite expectations of an SNB hold.
USD/CHF declines around 0.7790 on Wednesday at the time of writing, down 0.50% on the day, as the US Dollar (USD) remains under pressure in a more risk-positive market environment.
The pair’s decline comes amid growing optimism surrounding a potential agreement between the United States (US) and Iran. According to Axios, Washington and Tehran are moving closer to a memorandum of understanding that would provide a framework for future nuclear negotiations. This prospect is reducing demand for safe-haven flows linked to the US Dollar.
US Defense Secretary Pete Hegseth said that the ceasefire implemented nearly a month ago remains in place, while Secretary of State Marco Rubio stated that US offensive operations have ended. US President Donald Trump also announced a temporary pause in operations aimed at escorting vessels through the Strait of Hormuz to assess the chances of reaching a deal with Iran.
However, Trump warned on Wednesday that “if Iran does not agree to the deal, the bombing will resume at a much higher level,” limiting the improvement in market sentiment.
On the macroeconomic front, the ADP Employment Change report showed that the US private sector added 109K jobs in April, above market expectations of 99K. Despite the stronger-than-expected release, the US Dollar remains weakened by the improvement in risk appetite.
In Switzerland, data released on Wednesday showed that annual inflation accelerated to 0.6% YoY in April from 0.3% in March, slightly above the Swiss National Bank’s (SNB) average annual projection of 0.5%. The increase was mainly driven by higher energy costs following tensions in the Middle East.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.55% | -0.55% | -1.08% | -0.07% | -0.78% | -1.25% | -0.52% | |
| EUR | 0.55% | -0.01% | -0.50% | 0.49% | -0.23% | -0.73% | 0.03% | |
| GBP | 0.55% | 0.01% | -0.51% | 0.51% | -0.22% | -0.71% | 0.06% | |
| JPY | 1.08% | 0.50% | 0.51% | 1.01% | 0.29% | -0.20% | 0.59% | |
| CAD | 0.07% | -0.49% | -0.51% | -1.01% | -0.71% | -1.20% | -0.43% | |
| AUD | 0.78% | 0.23% | 0.22% | -0.29% | 0.71% | -0.48% | 0.27% | |
| NZD | 1.25% | 0.73% | 0.71% | 0.20% | 1.20% | 0.48% | 0.76% | |
| CHF | 0.52% | -0.03% | -0.06% | -0.59% | 0.43% | -0.27% | -0.76% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).