USD/CHF extends its losing streak for the fifth successive day, trading lower around 0.9070 during the Asian session on Tuesday. However, the pair rebounds from the three-week low as the US Dollar (USD) attempts to halt the losing streak.
Moreover, the USD/CHF pair is facing downward pressure due to the Palestine-Israel military conflict as the Swiss Franc (CHF) receives buying support due to its safe-haven status.
Early on Saturday, Hamas initiated an assault on Israel using land, air, and sea forces. In retaliation, the Israeli army has commenced a forceful response in Gaza, marking the region's most intense military conflict to date.
The US Dollar Index (DXY) trades higher around 106.17 at the time of writing. However, the US Dollar (USD) didn't appreciate the robust US Nonfarm Payrolls data released on Friday.
Additionally, the Greenback's depreciation can be attributed to a decline in US Treasury yields on Monday, with the 10-year US Treasury bond yield standing at 4.66% as of the current press time.
Moreover, the remarks made by Federal Reserve (Fed) officials overnight prompted investors to downplay the probability of additional rate hikes, resulting in a further drop in US bond yields. Consequently, this development is perceived as eroding the strength of the Greenback.
Dallas Fed president Lori Logan suggested that there might be less necessity to raise the Fed funds rate, and Fed Vice Chair Philip Jefferson acknowledged the importance of the central bank proceeding cautiously with any additional increases in the policy rate.
The impending release of the FOMC meeting minutes on Wednesday is anticipated to influence expectations regarding the Federal Reserve's next policy move, potentially impacting demand for the Greenback.
In the absence of any major data in the Swiss calendar this week, the US Core Producer Price Index (PPI) on Wednesday will be eyed, followed by the Consumer Price Index (CPI) on Thursday, as these events play a crucial role in evaluating inflationary trends and economic conditions in the United States.
Source : FXStreet
