USD/CHF slips to near 0.7900 as US-Iran ceasefire uncertainty prevails

USD/CHF remains in the negative territory for the fourth successive day, trading around 0.7910 during the Asian hours on Thursday. The Swiss Franc (CHF) strengthens against the US Dollar (USD) on renewed safe-haven demand amid uncertainty over the United States (US)-Iran ceasefire.

Iranian media reported a halt in tanker traffic through the Strait of Hormuz following fresh Israeli strikes in Lebanon. Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the US breached three key clauses of Iran’s 10-point proposal, calling further talks “unreasonable.” Meanwhile, US Vice President JD Vance signaled that the strait could begin reopening as he leads a US delegation to Islamabad for direct talks with Iran this weekend.

The recent surge in oil prices drove Swiss inflation to its fastest annual pace of 0.3% in March, offsetting CHF strength and easing pressure on the Swiss National Bank (SNB) to adjust policy. The SNB kept its key rate unchanged at 0% for a third consecutive March meeting and reiterated its readiness to curb Franc appreciation.

Federal Reserve’s (Fed) March Meeting Minutes suggest the central bank remains in a wait-and-see stance, while acknowledging that risks are becoming more balanced. Policymakers broadly supported holding rates steady, with nearly all participants backing no change, and many viewing policy as already near a neutral range, implying a high bar for further tightening.

Traders will likely observe the US Consumer Price Index (CPI) report for March, due Friday. Headline inflation is expected to rise 3.3% year-over-year (YoY), up from 2.4%, driven by higher oil prices amid the Middle East conflict.