USD/CHF Falls to 0.8200 Amid US Fiscal Concerns and Safe-Haven Flows

USD/CHF Remains on the Back Foot at 0.8200 Due to US Fiscal Concerns

The USD/CHF currency pair is trading lower around the 0.8200 level during early European session on Monday, pressured by growing concerns over the US fiscal situation. The weakening US Dollar is also influenced by soft inflation data released last week, which has increased market expectations for Federal Reserve rate cuts later this year.

Meanwhile, the Swiss Franc (CHF) benefits from its status as a safe-haven currency amid ongoing geopolitical tensions, particularly the Russia-Ukraine conflict, supporting its strength against the USD.

Investors are closely watching for key US economic data releases this week, including the first reading of the US Gross Domestic Product (GDP) for the first quarter and the Personal Consumption Expenditures (PCE) Price Index for April. Additionally, the Federal Open Market Committee (FOMC) Minutes due later this week are highly anticipated for clues on the future path of US interest rates.

Overall, the USD/CHF remains under pressure as traders weigh US fiscal uncertainty against safe-haven demand for the Swiss Franc.