USD/CHF returns above 0.8100 with the US Dollar buoyed by geopolitical tensions   

• The US Dollar is outperforming on Friday as investors rush for safety.

• Fears of a full-blown Israel-Iran war have boosted demand for safe-haven assets and the US Dollar.

• The broader trend, however, remains bearish with long-term lows, at 0.8045, still at a short distance.

The US Dollar is trimming losses after a sharp decline on Thursday. The risk-averse reaction to Israel’s attack on Iran has brought some life to the US Dollar, pushing the pair back above 0.8100, but still on track to a 1.3% weekly decline.

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News reports talk about explosions in nuclear and military sites in Iran that would have killed some high-ranking Revolutionary Guard figures in an attack that, according to Israeli Prime Minister Benjamin Netanyahu, might extend to several days.

Iran announced that it will abandon the nuclear talks with the US, which were taking place on Sunday in Oman, and launched a drone attack on Israel, which is being intercepted by the Israeli army.

These events have increased concerns about a regional war in the area, which would add a layer of uncertainty to an already gloomy global economic outlook, after Trump threatened to impose unilateral tariffs on all trading partners if they don’t abide to a series of demands that will be sent by main in the coming days.

The US Dollar has been the best beneficiary of the risk-averse sentiment. The  USD/CHF pair is trimming losses after having reached levels right above a 14-year low, at 0.8045. The broader trend, however, remains bearish, with Swiss Franc downside attempts likely to be limited in risk-off markets.