Ella 
USD/CHF oscillated around 0.8520 in Asian time on Thursday, continuing its fifth consecutive session of decline. The Swiss franc (CHF) may find support from safe-haven flows as the truce agreement between Israel and Hamas has reached an impasse, opening the door to a wider conflict in the Middle East.
On Wednesday, US President Biden urged Israeli Prime Minister Benjamin Netanyahu to prioritize securing a truce in Gaza and the release of hostages, but Israel and Hamas remain firm on their respective demands. Palestinian health officials reported that at least 50 Palestinians were killed in Israeli airstrikes within 24 hours, according to Reuters, and Vice President Kamala Harris also participated in the negotiations.
Michael Pfister, FX analyst at Commerzbank, noted that recent market turmoil has fueled strong demand for safety, which has had a positive impact on the Swiss franc (CHF). However, Pfister expects the Swiss franc to weaken modestly in the coming months as he predicts that the Swiss National Bank (SNB) may further reduce interest rates.
The US dollar (USD) rose on higher Treasury yields, which may be due to the market’s cautious attitude ahead of Federal Reserve Chairman Jerome Powell’s keynote speech at the annual Jackson Hole Symposium scheduled for Friday.
In addition, the minutes of the Fed’s July policy meeting showed that most Fed officials agreed last month that they would likely cut the benchmark interest rate at their upcoming meeting in September as long as inflation continued to cool. In addition, traders were also awaiting a speech by Fed Chairman Powell at the Jackson Hole Conference on Friday.
