USD/CHF has weakened to approximately 0.7780 during the early European session on Tuesday. The House is set to vote on the government funding bill on Tuesday, as a partial shutdown continues to unfold. The US Manufacturing PMI exceeded expectations in January. The USD/CHF pair declines beneath the 0.7800 mark, as uncertainty stemming from the US shutdown overshadows positive PMI data. The USD/CHF pair is experiencing a decline, approaching 0.7780 in the early European session on Tuesday. The US Dollar weakens relative to the Swiss Franc as a partial US government shutdown causes delays. Nonfarm Payrolls data raises concerns regarding the political stability in the US.
A funding package was advanced by the House Rules Committee late Monday. A comprehensive vote on the House floor is anticipated for Tuesday, which has the potential to conclude the shutdown if it receives approval and is signed by US President Donald Trump. This marks the second government shutdown in a matter of months, following a historic 43-day shutdown that concluded in November 2025. Should the ongoing partial US shutdown persist, it may erode confidence in US governance and apply downward pressure on the Greenback.
Meanwhile, diplomatic discussions between the United States and Iran could take place in Istanbul later on Friday, as Trump considers the option of a military strike on the Islamic Republic. Market participants will pay close attention to the unfolding events related to peace negotiations. Any indications of escalating tensions between the US and Iran may strengthen traditional safe-haven currencies, like the Swiss Franc, and pose challenges for the pair.
Conversely, the favorable economic data from the US could serve to mitigate the losses of the USD. The Institute for Supply Management disclosed on Monday that the US Manufacturing Purchasing Managers’ Index increased to 52.6 in January, compared to 47.9 previously. This reading surpasses the forecast of 48.5 and marks the most robust expansion since 2022. Traders have scaled back their expectations for Federal Reserve rate cuts in light of the positive PMI data. The money markets indicated that the subsequent reduction is anticipated in July.