• USD/CHF may continue its losing streak despite an improved US Dollar.
• The Swiss Franc may advance further due to safe-haven flows amid a lack of truce agreement between Israel and Hamas.
• The Greenback holds gains due to market caution ahead of Fed Chair Powell’s speech at the Jackson Hole Symposium.

USD/CHF remains tepid around 0.8520 during the Asian session on Thursday, with a negative bias to continue its losing streak for the fifth successive day. The Swiss Franc (CHF) might gain support from safe-haven flows due to the ongoing stalemate in achieving a truce agreement between Israel and Hamas, which leaves the door open for a broader conflict in the Middle East.

On Wednesday, US President Joe Biden urged Israeli Prime Minister Benjamin Netanyahu to prioritize securing a truce in Gaza and the release of hostages, but both Israel and Hamas remained firm on their respective demands. The conversation, which also included Vice President Kamala Harris, occurred after Palestinian health officials reported that at least 50 Palestinians had been killed by Israeli airstrikes within 24 hours, according to a Reuters report.

Commerzbank FX Analyst Michael Pfister observed that recent market turbulence spurred a strong demand for safety, which positively impacted the Swiss franc (CHF). However, Pfister anticipates moderate CHF weakness in the coming months, predicting that the Swiss National Bank (SNB) is likely to lower interest rates further