USD/CHF sees a downside near 0.9250 on de-escalation in the Russia-Ukraine war

• USD/CHF is expecting more weakness amid softer DXY.
• The withdrawal of some Russian rebels hopes for de-escalation in the Russia-Ukraine war.
• The constructive outcome from the Russia-Ukraine peace talks has advocated risk-on impulse.

The USD/CHF continues to drop further as the improvement in the risk appetite of the market participants is shifting the liquidity from safe-haven assets to risk-perceived currencies. The asset is likely to be cushioned around the previous week’s low at 0.9260.

The de-escalation in the Russia-Ukraine war led by the withdrawal of Russian military troops from Ukraine has turned the market sentiment positive. In the first face-to-face negotiations between Russian and Ukrainian officials in Turkey, a constructive outcome took place in which the Russian rebels promised to be reduced from northern Ukraine and Kyiv while Ukraine will adopt a neutral status and will abstain from alliances. Moscow's lead negotiator cautioned that Russia's promise to decrease military operations did not represent a ceasefire and a formal agreement with Kyiv had a long way to go, as per Reuters. But, investors have still considered the step as a potential advance toward a truce.

Meanwhile, the US dollar index (DXY) looks to slip further below 98.00 amid upbeat market sentiment. The market participants have shrugged off the decent performance from the US Consumer Confidence. The US Conference Board reported Consumer Confidence at 107.2 in March from 105.7, reported a month earlier and a little above the expected 107.0 reading. This showed that the confidence of US individuals in the US economic activities is on elevation.

This week the US Nonfarm Payrolls (NFP) will remain the mega event for the market, which is due on Friday. But before that, investors will keep an eye over the US ADP Employment Change and Gross Domestic Product (GDP) Annualized, which are due on Wednesday.