Forex
USD Gains Ground Amid Escalating Tensions and Rate Hike Fears
The US Dollar (USD) has gained strength driven by renewed safe-haven demand amid escalating Middle East tensions. The USD/CHF currency pair has extended its gains for the second successive day, trading around 0.8130 during Asian hours on Friday.
Rising US Treasury yields and recovering crude oil prices have reignited fears that the Federal Reserve could implement another interest rate hike next month. Despite these inflationary signals, the CME FedWatch Tool currently reflects a 54.5% probability of a 25-basis-point rate increase in September, down from 63.4% last week.
On the Swiss side, economic indicators present a mixed picture. Switzerland's non-seasonally adjusted unemployment rate ticked up to 3.0% in July from 2.9% in June.