13.06.2025 08:24

Geopolitical tensions, primarily stemming from escalating conflict between Israel and Iran, have propelled the US dollar higher against the Swiss franc on Friday. Investors, seeking the safety of established assets amidst growing uncertainty, are driving up demand for the US dollar.

Despite this recent surge, pushing the USD/CHF pair back above the 0.8100 mark, the overall trend for the dollar remains bearish. The pair remains on course for a weekly decline of approximately 1.3%, with the recent recovery coming after a significant drop on Thursday and still relatively close to a 14-year low of 0.8045.

News reports detail substantial explosions at Iranian nuclear and military sites, resulting in reported casualties among high-ranking members of the Iranian Revolutionary Guard. These attacks, according to Israeli Prime Minister Benjamin Netanyahu, may continue for several days. In response, Iran has suspended nuclear talks with the United States and launched a drone attack on Israel, which Israeli forces are intercepting.

This volatile situation has fueled widespread anxiety about a potential regional war, adding further uncertainty to an already precarious global economic climate. This is further exacerbated by President Trump's threat to unilaterally impose tariffs on all trading partners failing to meet certain demands, to be communicated shortly. The flight to safety is clearly benefiting the US dollar, offering a haven for risk-averse investors. The USD/CHF pair, having briefly touched near a 14-year low, is now showing signs of recovery, although the bearish trend appears to persist, limiting potential Swiss franc declines in this risk-off environment. The inherent strength of the Swiss Franc in such situations may be acting as a counterbalance to significant downwards pressure.