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USD/CHF Weakens Below 0.8150 Ahead Of US Retail Sales Release
Tuesday, 17 June 2025 13:39 WIB | USD/CHF |

The USD/CHF pair weakened to around 0.8135 during the early European session on Tuesday (6/17). Persistent geopolitical risks in the Middle East provided some support to the Swiss Franc (CHF) against the US Dollar (USD). Traders are gearing up for the US Retail Sales data for May, due later on Tuesday.

The conflict between Israel and Iran has entered its fifth day despite global calls for negotiations and de-escalation. Late on Monday, US President Donald Trump called for the evacuation of the Iranian capital, Tehran, hours after urging the country's leaders to accept a deal to curb its nuclear program, despite Israel indicating that attacks would continue. Rising geopolitical tensions in the Middle East are likely to boost safe-haven flows, supporting the CHF in the near term.

However, signs of easing geopolitical tensions could drag the CHF lower and act as a tailwind for the pair. There was some hope on Monday that the situation would not worsen when Iran reportedly asked many countries to pressure Israel into a ceasefire.

The US Federal Reserve's interest rate decision will be the focus on Wednesday, which is widely expected to hold rates steady at its June meeting. Futures are pricing in two rate cuts by the end of the year, possibly starting in September, supported by softer inflation data last week.

Traders will take more cues from the FOMC Press Conference. "If the Fed is as dovish as we expect, the dollar will likely weaken again on the worsening fundamental backdrop in the US," said Win Thin, chief global market strategist at Brown Brothers Harriman. (alg)

Source: FXstreet

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