USD/CHF stays in a sideways formation in holiday-thin market conditions

• Stuck in a range, USD/CHF is at the mercy of the spread of the coronavirus. 
• The Swiss franc and the US dollar are renowned safe-haven currencies. 

USD/CHF is stuck in a range as traders move to the sidelines and keep a watchful eye on the spread of the new coronavirus variant. At the time of writing, USD/CHF is trading 0.18% higher and between a low of 0.9196 and a high of 0.9219.

The new Omicron variant of SARS-CoV-2, the coronavirus that causes Covid-19, had been reported in some 77 nations as of mid-December after a steep increase in new cases in southern Africa, where it was first identified.

Various nations in Europe are increasing restrictions to the point where vaccination will become essential for anyone who wants to work or enter public spaces such as bars and restaurants. Italy’s government may be requiring inoculated people as well as the unvaccinated to take Covid tests to access large events, according to people familiar with the matter.

Switzerland has tightened Covid measures amid a worsening situation in the nation. While the Covid certificate will be restricted only to the vaccinated and recovered, the toughest measures forecast last weekend – which included the complete closure of bars, restaurants and events – are a realistic option. Currently, only vaccinated and recovered people will be able to access restaurants, cultural, sports and leisure facilities as well as events. Masks will be required and people must also have an allocated seat.

US Pres. Biden to address the nation on Covid

As for the US, Covid is also surging there again, helped by colder weather, holiday travel and gatherings. The stress on the medical system is expected to be particularly acute in regions of the country with low levels of vaccination, Fauci told CNN’s “State of the Union.”

In his address to the people on Tuesday, President Joe Biden is expected to announce a stark warning of what the winter will look like for Americans that choose to remain unvaccinated, according to a White House official. The president will be prompted by the new wave in states such as New York which broke a record for new infections for a third straight day.