USD/CHF skids below 0.9170 amid an expansion in the risk appetite

• USD/CHF is eyeing 0.9150 as investors underpin the risk-off impulse post the Russia-Ukraine peace talks.
• The outperformance of Swiss Retail Sales has supported the Swiss franc.
• The headlines from the Russia-Ukraine war will remain a key driver going forward.

The USD/CHF pair has plunged on Monday after the ultra-hot volatile market cools off after a broad-based buying in the global markets. USD/CHF is juggling near 0.9170 on Tuesday but is expected to extend losses after slipping below Tuesday’s low at 0.9165.

The market has remained vulnerable for risk-sensitive assets amid the ongoing war between Russia and Ukraine, which has caused death and destruction in Ukraine. The Western leaders have imposed a spree of sanctions on the Moscow post the expansion of Russian military activities on Ukraine. Russia has been isolated by cutting it off from the SWIFT international banking system. Additionally, the EU and U.S. announced moves that effectively froze over half the extent of the Russian Central Bank's foreign reserves, as per Reuters. This has intensified a threat of recession in Europe, which is why the safe-haven appeal has remained underpinned.

However, the global sell-off of risk-sensitive assets has rebounded after the peace talks between Moscow and Ukraine at the Belarusian border. Although, there has been no positive outcome yet and the nations will discuss the negotiations again but agreement on peace talks has established grounds towards a ceasefire.

Moreover, the yearly Retail Sales released by the Swiss Federal Statistical Office on Monday has increased to 5.1%, much higher than the previous print of (0.5), which has also underpinned the Swiss franc against the greenback.

Meanwhile, the US dollar index (DXY) is gauging support around 96.75 but looks to plunge further amid fading risk-aversion theme.