USD/CHF weakens to near 0.8850 ahead of US PMI data

USD/CHF softens to near 0.8860 in Friday’s early European session. 

The escalation in the Russia-Ukraine war might support the Swiss Franc.

Bets for a less dovish Fed might help limit the USD’s losses. 

The USD/CHF pair trades with mild losses around 0.8860 during the early European session on Friday. The fears of a potential escalation in the Russia-Ukraine conflict boost the safe-haven flows, benefiting the Swiss Franc (CHF) against the Greenback. Traders await the flash US S&P Global Purchasing Managers Index (PMI) data and the final Michigan Consumer Sentiment on Friday for fresh impetus. 

Russian President Vladimir Putin said on Thursday that Russia carried out a strike with a “ballistic missile with a non-nuclear hypersonic warhead” with a medium range on the Ukrainian city of Dnipro, per CNN. Putin also warned the West that Moscow could attack any country's military facilities that utilised weapons against Russia. The development surrounding the Russia-Ukraine war will be closely watched, and any signs of rising geopolitical risks could lift the safe-haven currency like the CHF in the near term.