Ella 
USD/CHF closed lower for the fifth day in a row, trading lower around 0.9070 during the Asian session on Tuesday. However, the pair rebounded from three-week lows as the US dollar (USD) attempted to halt its losing streak.
Additionally, USD/CHF came under downward pressure due to the Israeli-Palestinian military conflict, while the CHF received buying support due to its safe-haven status.
Earlier on Saturday, Hamas launched an attack on Israel using its army, navy and air force. Israeli forces retaliated with a powerful counterattack in Gaza, marking the region’s most intense military conflict to date.
At the time of writing, the U.S. Dollar Index (DXY) is trading higher near 106.17. However, the U.S. dollar (USD) did not appreciate on Friday’s strong U.S. non-farm payrolls data.
In addition, the dollar’s depreciation was also caused by the decline in U.S. Treasury yields on Monday. As of press time, the 10-year U.S. Treasury yield was 4.66%.
In addition, comments from Federal Reserve (Fed) officials overnight prompted investors to downplay the possibility of additional interest rate hikes, causing U.S. bond yields to fall further. Therefore, this development is seen as weakening the dollar’s strength.
Dallas Fed President Lori Logan said the need to raise the Fed’s funds rate may lessen, while Fed Vice Chairman Philip Jefferson acknowledged the central bank must proceed with caution when raising policy rates further.
The minutes of the FOMC meeting to be released on Wednesday are expected to affect expectations for the Fed’s next policy moves, which may affect demand for the U.S. dollar.
Without any important data on the Swiss calendar this week, attention will be paid to Wednesday’s U.S. core producer price index (PPI) and Thursday’s consumer price index (CPI), as these data will be important in assessing inflation trends and economic conditions in the United States. plays a vital role.
