USD/CHF depreciates as the safe-haven demand increases amid rising tensions between Israel and Iran.
CBS journalist reported that US officials have been told that Israel is fully prepared to launch an operation into Iran.
US Consumer Price Index climbed 2.4% YoY in May, coming in slightly below the expected 2.5% rise.
USD/CHF extends its losses for the second successive day, trading around 0.8160 during the Asian hours on Thursday. The pair depreciates as the Swiss Franc (CHF) received support from the increased safe-haven demand amid escalating tensions between Israel and Iran.
According to a Reuters report, the United States (US) decided to reduce its personnel in the Middle East. CBS News senior White House correspondent Jennifer Jacobs reported that US officials have been told that Israel is fully ready to launch an operation into Iran.
US President Donald Trump said on Wednesday that the US would not permit Iran to have a nuclear weapon, per Reuters. The US and Iran are expected to meet on Sunday for nuclear talks. Axios reporter Barak Ravid reported that “White House envoy Steve Witkoff is going to meet Iranian foreign minister Abbas Araghchi in Muscat on Sunday and discuss the Iranian response to the recent US proposal, a US official tells me.”
Additionally, the USD/CHF depreciates as the US Dollar (USD) struggles amid increasing odds of the Fed rate cut in September, boosted by cooler-than-expected US inflation in May. The US Consumer Price Index (CPI) rose 2.4% year-over-year in May, slightly above 2.3% prior but below the market expectations of a 2.5% increase. The core CPI, which excludes volatile food and energy prices, climbed 2.8% YoY in May, compared to the consensus of 2.9%.
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