USD/CHF remains under selling pressure near 0.8250 in Thursday’s early European session.
US fiscal concerns hurt US Dollar, supporting the safe-haven CHF.
Trump told EU leaders that Putin isn’t ready to end the war.
The USD/CHF pair extends the decline to around 0.8250 during the early European session on Thursday. The Greenback weakens against the Swiss Franc (CHF) due to US fiscal concerns. Traders will take more cues from the advanced US S&P Purchasing Managers Index (PMI) for May.
US President Donald Trump's "One Big, Beautiful Bill" is set to be voted on by the House on Thursday, and if passed, it would increase the federal deficit by $3 trillion to $5 trillion over the next 10 years. This adds to concerns about the worsening US fiscal outlook and weighs on investors' sentiment. These US fiscal concerns, along with a tepid auction of Treasury bonds, undermine the US Dollar (USD) against the CHF.
The Wall Street Journal (WSJ) reported late Wednesday that US President Donald Trump told European leaders that Russian President Vladimir Putin isn’t ready to end the war because he thinks he is winning. Trump shifted from suggesting sanctions to proposing lower-level talks at the Vatican between Russia and Ukraine.
Traders will also monitor the next round of Iran-US talks that will take place on Friday in Rome. Any signs of progress in negotiations or easing geopolitical tensions could undermine safe-haven currencies like the Swiss Franc and create a tailwind for the USD/CHF pair.
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