The CAD/CHF currency pair held near a 3-week high of 0.5724 on Tuesday, following an agreement between Iran and Israel to suspend reciprocal attacks, easing demand for traditional safe-haven assets such as the Swiss Franc.
The de-escalation followed an appeal by US President Donald Trump and has lifted market sentiment, with investors viewing it as an opening for broader peace talks to progress.
Still, the Franc’s downside risk appears restrained by doubts over the durability of the ceasefire in the Middle East. Israeli Prime Minister Benjamin Netanyahu cautioned that the conflict with Iran and Hezbollah “has not yet ended,” while asserting that both adversaries are now in a weakened position.
On the data front, Switzerland’s CPI inflation registered 0.6% for May, below the 0.8% market consensus. The weaker-than-expected figure has diminished prospects of any near-term rate hike by the Swiss National Bank.
SNB Chairman Martin Schlegel has emphasized that medium-term inflation pressures remain fully contained.
Market players have consolidated their view that the SNB will likely maintain its benchmark rate at 0% through 2026.
At the same time, the easing of geopolitical tensions is pressuring Crude Oil prices. Softer Oil is a negative driver for the Canadian Dollar, which is closely tied to commodity markets.
The CAD/CHF currency pair was last up 0.08% on the day to trade at 0.5715.
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