Swiss Franc ticks up, but US Dollar dips remain contained amid risk-off markets

• USD/CHF nudges down from 0.8100 but maintains its near-term bullish trend intact.
• Conflicting news from Iran is keeping risk appetite subdued.
• Swiss trade surplus narrowed to CHF 5,224 million in June from CHF 5,989 million in May.

The Swiss Franc (CHF) has trimmed some losses against the US Dollar (USD) on Tuesday, as USD/CHF bulls failed to find acceptance above the 0.8100 area. Market speculation about a ceasefire proposal in Iran has triggered a slight pullback on the US Dollar, yet dips have been shallow so far, as concerns of an all-out war are underpinning support for the safe-haven Greenback.

The US hit targets across Iran for the tenth consecutive day on Tuesday, and Tehran responded by striking US assets in Gulf countries. Reports of attacks on vessels attempting to cross the Strait of Hormuz and the announcement by the Tehran-backed Houthis of a blockade to Saudi Arabian vessels in the Red Sea are keeping Oil prices near six-week highs.

Ceasefire hopes are keeping the Swiss Franc from falling further

Meanwhile, Qatar and Pakistan keep working to reach another ceasefire. Iranian authorities affirmed on Monday that they received a proposal for another 10-day ceasefire. Axious news, on the other hand, reported that US President Donald Trump is preparing for an all-out war in case the negotiating way fails.

Earlier on Tuesday, data released by the Swiss Federal Customs Administration revealed that the Trade Balance surplus narrowed slightly in June, to CHF 5,224 million from the upwardly revised CHF 5,989 million in May.

In the US, the calendar is thin this week with only the Preliminary S&P Global Purchasing Managers' Index (PMI) release, due on Friday, worth mentioning. The US Dollar, however, maintains a moderately bullish near-term tone, buoyed by concerns that the situation in Iran escalates out of control, and market speculation that rising energy prices will force the Federal Reserve (Fed) to hike rates in September.