USD/CHF rises above 0.7800 on safe-haven demand, rising energy prices

USD/CHF has recovered its recent losses from the previous session, trading around 0.7820 during the Asian hours on Monday. The pair appreciates as the Greenback benefits from its "twin status as a safe-haven and energy exporter.

CBA economists said in a report, "Iran is incentivized to strike back to gain leverage in future negotiations to end the war. The US and Israel are incentivized to degrade Iran's offensive capabilities to gain leverage in future negotiations to end the war."

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, rises to near three-month highs and is trading around 99.50 at the time of writing. The US Dollar draws support as West Texas Intermediate (WTI) crude Oil prices surge above $100.00 per barrel to over three-year highs, fueled by concerns that a prolonged Middle East conflict could disrupt global energy supplies over the longer term.

The Telegraph reported on Sunday that US President Donald Trump said that the rise in oil prices is a “very small price to pay” for defeating Iran and ensuring global peace. Earlier, Trump posted on Truth Social that Iran’s only option is unconditional surrender and that after that happens, he will help select its next leader.

The upside of the USD/CHF pair could be restrained as the Swiss Franc (CHF) may strengthen on rising safe-haven demand. However, traders remain cautious due to the risk of Swiss National Bank (SNB) intervention and weak domestic inflation. SNB Vice-President Antoine Martin reiterated the central bank’s readiness to act against excessive Franc appreciation amid a complex geopolitical backdrop.