Key Moments
- USD/CHF trades near 0.7960 on Monday, gaining 0.50% on the session amid sustained safe-haven demand.
- Swiss Real Retail Sales increased 2.3% YoY in November, undershooting the 2.9% consensus and offering limited support to the CHF.
- The US Dollar strengthens broadly, with USD showing its largest advance against the Canadian Dollar in today’s FX moves.
USD/CHF Holds Higher After Swiss Data
USD/CHF is trading around 0.7960 on Monday at the time of writing, up 0.50% on the day, and remains supported following a batch of mixed Swiss economic figures. Swiss Real Retail Sales expanded by 2.3% year-on-year in November, falling short of market expectations for a 2.9% rise but edging above the prior 2.2% increase. The figures indicate that consumer spending in Switzerland is holding up, but not with enough strength to decisively favor the Swiss Franc (CHF) in current trading.
Geopolitical Tensions Support Safe-Haven CHF
Despite the data miss, the CHF may still attract buyers as geopolitical risks intensify. Tensions between Russia and Ukraine have heightened amid reports of frequent drone attacks targeting Moscow since the start of the year. This backdrop has encouraged a more risk-averse market stance, which can be supportive for traditional safe-haven currencies such as the Swiss Franc.
USD Backed by Political Developments and Fed Rhetoric
The US Dollar (USD) is likewise drawing safe-haven inflows, but for reasons linked to political developments in Latin America. The United States (US) has captured Venezuelan President Nicolas Maduro, an event that has revived geopolitical concerns and provided additional support for the Greenback. US President Donald Trump has also warned that Washington could step up its actions if Venezuelan authorities fail to cooperate with US plans regarding the Oil sector and efforts to curb drug trafficking.
From a macroeconomic policy angle, the USD is further underpinned by recent Federal Reserve (Fed) commentary. Minneapolis Fed President Neel Kashkari stated that inflation remains too high and that monetary policy is now close to a neutral level. He also highlighted a gradual cooling in the labor market and a slow downward trend in inflation, reinforcing the view that any easing cycle is likely to be very gradual.
Data Calendar: Markets Eye US ISM Manufacturing
Investors are now looking ahead to the release of the US ISM Manufacturing Purchasing Managers Index (PMI), due later in the day, for additional insight into the relative strength of the US economy and potential implications for the Dollar.
US Dollar Performance Against Major Currencies
The following table summarizes today’s percentage changes in the US Dollar (USD) versus major currencies. According to the data, the US Dollar has been strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | — | 0.49% | 0.21% | 0.03% | 0.59% | 0.43% | 0.43% | 0.53% |
| EUR | -0.49% | — | -0.29% | -0.44% | 0.09% | -0.07% | -0.07% | 0.03% |
| GBP | -0.21% | 0.29% | — | -0.17% | 0.39% | 0.22% | 0.22% | 0.32% |
| JPY | -0.03% | 0.44% | 0.17% | — | 0.55% | 0.38% | 0.38% | 0.48% |
| CAD | -0.59% | -0.09% | -0.39% | -0.55% | — | -0.17% | -0.16% | -0.07% |
| AUD | -0.43% | 0.07% | -0.22% | -0.38% | 0.17% | — | -0.00% | 0.10% |
| NZD | -0.43% | 0.07% | -0.22% | -0.38% | 0.16% | 0.00% | — | 0.10% |
| CHF | -0.53% | -0.03% | -0.32% | -0.48% | 0.07% | -0.10% | -0.10% | — |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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