USD/CHF skids below 0.9250 after the DXY gets subdued post US sanctions on Russia

• USD/CHF has slipped below 0.9250 as investors turn cautiously optimistic post-US sanctions on Moscow.
• The undertone of the market is still negative and investors might stick to the risk-aversion theme.
• The DXY is waiting for fresh impetus from the Russia-Ukraine war for further direction.

The USD/CHF pair has retreated from Thursday’s high at 0.9288, trading back and forth in a radius of 0.9243-0.9264, and is expected to skid further as the undertone of the market turns cautiously optimistic. It seems that investors have started digesting the maximum worse, which can happen to the world economy through the Russia-Ukraine war.

On Thursday, USD/CHF has witnessed a juggernaut rally after Moscow operated a full-scale military action on Ukraine despite the fear of sanctions and warnings from the Western leaders. The major gained around 0.7% against Wednesday’s closing price. Amid the geopolitical crisis, the risk-off impulse remained active and investors chose the greenback over the Swiss franc.

The situation of Ukraine has worsened after the attacks from the Kremlin. As per the United Nations (UN) refugee agency, “An estimated 100,000 Ukrainians had fled their homes. Thousands were crossing into neighboring countries, including Romania, Moldova, Poland, and Hungary.”

Meanwhile, the US dollar index (DXY) is awaiting fresh impetus for further guidance after refreshing 2022 peak. On Thursday, the GDP numbers (annualized) from the US Bureau of Economic Analysis remained in line with the estimates of 7% but improved from the previous print of 6.9%. While the weekly Initial Jobless Claims by the Department of Labor slipped to 232k from the previous print of 249k.

However, Thursday’s Employment Level released by the Swiss Statistics improved to 5.239M above than the market estimates and previous print of 5.179M and 5.213M respectively.