USD/CHF remains subdued below 0.8200 due to increased safe-haven demand

• USD/CHF struggles as the Swiss Franc strengthens on rising safe-haven demand.

• President Trump said that he had "obliterated" Iran's main nuclear sites, including Fordow, Natanz, and Isfahan.

• Fed Governor Christopher Waller said that the US central bank could start easing policy as soon as next month.

USD/CHF edges lower after registering gains in the previous session, trading around 0.8170 during the Asian hours on Monday. The pair depreciates as the Swiss Franc (CHF) receives support from the increased safe-haven demand, driven by the United States (US) attacks on three Iranian nuclear facilities over the weekend.

US President Donald Trump announced late Saturday that he had "obliterated" Iran's main nuclear sites, including Fordow, Natanz, and Isfahan, in strikes overnight, in coordination with an Israeli assault. This Middle East conflict is poised to escalate as Tehran vowed to defend itself.

Last week, the data showed that Switzerland’s trade surplus declined to CHF 2.0 billion in May from a downwardly revised CHF 5.4 billion in April. The Swiss trade balance has marked the smallest surplus since December 2023. Traders will likely observe the ZEW Survey – Expectations for June and the SNB Quarterly Bulletin for the second quarter, scheduled to be released on Wednesday.

In the United States (US), Federal Reserve (Fed) Governor Christopher Waller noted on Friday that the US central bank could start easing monetary policy as soon as next month, signaling flexibility amid global economic uncertainty and rising geopolitical risks. However, Fed Chair Jerome Powell warned earlier that ongoing policy uncertainty will keep the central bank in a rate-hold stance, and any rate cuts will be contingent on further improvement in labor and inflation data.