- USD/CHF has struggled to surpass 0.9160 as the risk-off episode has appealed more for the Swiss franc.
- Biden-Putin summit is uncertain on Russia’s precursors to invade Ukraine.
- The US Consumer Confidence and PMI Composite Reports will keep the investors busy.
The USD/CHF pair has rebounded from the lows of 0.9155 on the mounting tensions over the Russia-Ukraine tussle. The investors have underpinned the greenback against the Swiss franc on safe-haven appeal.
As Russia has been supported by the Separatists to build military bases in eastern Ukraine, the market participants are considering it a precursor to invade Ukraine. The move has resulted in a breach of international law.
The Western leaders are set to retaliate against Russia by imposing sanctions, which may impact their economy. The Russian markets have started showing the impact, even getting no material sanction yet as the former plunges more than 10% on Monday.
Meanwhile, White House Principal Deputy National Security Adviser Jonathan Finer said there can be no diplomatic meetings with US-Russia foreign ministers or presidents if Russia takes further military action in Ukraine, as per Reuters.
It is worth noting that the greenback has been underperforming against the Swiss franc since last week, courtesy of the declining bets over a 50 basis points (bps) rate hike by the Federal Reserve (Fed) in March’s monetary policy committee (MPC) meeting.
The US dollar index (DXY) is heading strongly to breach 96.00 on improving safe-haven appeal. Further, the DXY is likely to be guided by the US Consumer Confidence and PMI Composite Reports on Tuesday. While the Swiss Centre for European Economic Research will release ZEW Survey Expectations on Wednesday that will impact the Swiss franc.