Safe-Haven Flows Lift Swiss Franc as War Tensions Rise
The Swiss franc strengthened across the market as investors rushed toward safer assets amid escalating Middle East tensions. The U.S. dollar weakened after a disappointing U.S. jobs report added pressure to the currency.
The U.S. economy unexpectedly lost 92,000 jobs in February, pushing unemployment up to 4.4%. The weak data increased expectations that the Federal Reserve may begin cutting interest rates earlier, with markets now pricing a strong possibility of a September rate cut.
Meanwhile, geopolitical risks remain a major driver of market sentiment. Escalating conflict involving Iran has boosted demand for safe-haven assets while pushing oil prices sharply higher, with U.S. crude jumping about 12% to around $90 per barrel.
Despite Friday’s drop, the U.S. dollar still posted its strongest weekly gain since November 2024, while the euro recorded its largest weekly decline since April 2024.
In short, markets are currently balancing two powerful forces:
• Rising geopolitical risk supporting safe-haven assets
• Weak U.S. economic data increasing rate-cut expectations
Expect continued volatility in FX, commodities, and crypto as traders react to both macro data and geopolitical developments.