USD/CHF Rises Above 0.8100 as Strong US Sentiment Data Lifts the Dollar

The USD/CHF pair edged higher early Monday, climbing toward 0.8125 in the European session as the US Dollar regained demand. The rally follows upbeat consumer sentiment data from the US and growing anticipation around the Federal Reserve’s policy decision this week.

📈 Key Highlights:

✅ USD/CHF trades near 0.8125, supported by renewed USD strength
✅ US Michigan Consumer Sentiment rose to 60.5, beating expectations
✅ Fed expected to hold interest rates steady on Wednesday
✅ Geopolitical tensions may limit USD/CHF gains amid CHF safe-haven flows

🔍 US Dollar Boosted by Strong Sentiment Data

The University of Michigan’s Consumer Sentiment Index surged to 60.5 in June, well above both the previous reading of 52.2 and the expected 53.5. The upbeat data strengthened the US Dollar Index (DXY), which climbed to around 98.25, gaining 0.15% intraday. This renewed optimism in the US economy helped push USD/CHF higher.

🏦 Fed in Focus This Week

Markets now turn their attention to the Federal Reserve’s June policy decision scheduled for Wednesday. The Fed is widely expected to keep interest rates unchanged, while futures markets still price in two potential rate cuts by year-end—possibly starting in September, following last week’s softer inflation print.

🌍 Geopolitical Risks Cap Further Gains

While the US Dollar remains firm, safe-haven flows into the Swiss Franc (CHF) could limit USD/CHF’s upside. The ongoing Israel-Iran conflict continues to escalate, with Israel targeting Iranian nuclear and missile sites and Iran retaliating with attacks on Israeli cities, including Haifa. Heightened regional tensions may keep investors cautious and favor the CHF.

📊 What’s Ahead

Later today, investors will watch for Swiss May Producer and Import Prices and SECO Economic Forecasts. These data points could provide further direction for CHF trading ahead of the Fed’s announcement.

🔮 USD/CHF Forecast: