USD/CHF steady as Swiss UBS investor sentiment improves to +12.1 in August

The Swiss franc holds a firm footing after UBS investor sentiment for August printed at +12.1, up from +10.0 in July, marking a second straight month in positive territory following the sharp rebound from June's negative reading. The improvement signals that domestic investors have grown more constructive on Switzerland's economic outlook despite the ongoing US-Iran conflict and elevated crude prices, which typically weigh on the energy-importing Swiss economy. Importantly, the survey is unlikely to shift the Swiss National Bank's stance: markets continue to price the SNB on hold at current ultra-low settings at least until the second half of 2027, leaving CHF driven primarily by risk sentiment and safe-haven demand rather than rate expectations. For traders, this keeps USD/CHF and EUR/CHF sensitive to geopolitical headlines, with any de-escalation in the Middle East likely to trim franc haven bids. Sentiment surveys of this type rarely move spot materially, so the franc's near-term direction should remain tied to global risk appetite and dollar flows rather than Swiss domestic data.