USD Trimmed Gains as Market Analysts Take Measured View of Rate Hike

The Swiss Franc (CHF) gained moderate strength in early European trading on Monday as the US Dollar (USD) trimmed its gains from the previous day. The USD/CHF pair had surged after Fed Chair Kevin Warsh's hawkish comments at the Jackson Hole summit, but market analysts are now taking a more measured view.

The rising tensions between the US and Iran, along with higher oil prices, continue to support the safe-haven US Dollar. However, Commerzbank's Thu Lan Nguyen cautions that it is 'by no means a done deal' for a September rate hike, despite the increased likelihood of one.

The calendar is thin on Monday, but market participants will be watching for developments in Iran and the G20 meeting of financial ministers in North Carolina. US Treasury Secretary Scott Bessdent is set to challenge global economies, including China, to sever ties with Iran and calm markets.