CAD/CHF hovers above fresh 1-week low of 0.5927

The CAD/CHF currency pair hovered just above a 1-week low of 0.5927 on Monday, as the escalating conflict in the Middle East in the wake of the US strike on crucial Iranian nuclear facilities over the weekend spurred demand for safe-haven currencies such as the Swiss Franc.

Investors were also on watch for what the Islamic state’s response could be.

US President Trump on Sunday raised the question of a regime change in Iran, while senior US officials warned Tehran against retaliation.

On the cenbank policy front, the Swiss National Bank lowered its policy rate by 25 basis points to 0% at its June meeting, in line with market consensus.

The decision, which came amid easing inflationary pressures and a weakening global economic outlook, brought borrowing costs to their lowest level since August 2022.

Meanwhile, market players will also be looking into Canadian CPI inflation data for May due out tomorrow.

The median CPI inflation probably eased to 3% in May, according to market consensus.

The trimmed-mean core inflation rate, the Bank of Canada’s preferred measure of underlying inflation, probably eased to 3% in May from 3.1% in April.

The CAD/CHF currency pair was last down 0.33% on the day to trade at 0.5933.