• USD/CHF flatlines around 0.7870 after pulling back from three-week highs above 0.7100.
• Swiss Industrial Production fell against expectations in Q1.
• A moderate optimism about a US-Iran peace deal has capped the US Dollar's rally.

The Swiss Franc (CHF) is trading flat against the US Dollar (USD) on Thursday, so far unfazed by the sharp decline in Swiss Industrial Production. The USD/CHF pair is trading within a tight range around 0.7870 after pulling back from three-week highs above 0.7900 on Wednesday, while the near-term bullish trend remains intact.

Data from the Swiss Federal Statistics Office revealed that factory output fell by 7.1% in the first quarter of the year compared with the same period in 2025, following a 0.7% decline in the previous quarter. The market consensus had advanced a rebound to 0.5%

The worst performer was the pharmaceutical sector, which has seen a 20% decline, followed by transport equipment manufacturing production, which fell by 15%. Electricity supply, with a 6% decline, also contributed to the data, while metal products’ manufacturing cushioned the fall with an 8.8% growth.

The US Dollar is trading within previous ranges against its main peers on Thursday, as comments by US President Donald Trump hinting at a nearing deal with Iran provided a moderate market optimism, halting safe-haven flows for now.

In the US calendar, the focus today will be on the preliminary S&P Global PMIs, due later in the day, which will provide further insight about the economic impact of the Middle East war.