The Swiss franc weakened against its major counterparts in the European session on Tuesday amid risk appetite, as talks between Ukrainian and Russian diplomats have begun in Turkey, with investors pinning hopes for a ceasefire agreement to evacuate civilians from heavily bombarded cities.
The two-day face-to-face talks is taking place at the Dolmabah?e Palace in Istanbul.
Russian defence minister Sergei Shoigu said that the “liberation” of the Donbas region is Moscow’s “main goal” in Ukraine and the potential of the Ukrainian armed forces has been significantly reduced.
The Ukrainian Presidential adviser said that security guarantees and humanitarian issues are the main topics for discussion at the meeting.
Ahead of the talks, the Ukrainian President said that his government is ready to consider Russia’s demand of adopting a neutral status and compromise over the status of the eastern Donbass region.
The franc depreciated to near a 2-week low of 1.0349 against the euro, from a high of 1.0251 seen at 9:30 pm ET. The franc may test support around the 1.05 level, if it drops further.
The franc pulled back from its prior highs of 132.87 against the yen and 0.9326 against the greenback, weakening to 131.87 and 0.9374, respectively. Next likely support for the franc is seen around 124.00 against the yen and 0.97 against the greenback.
The franc reached as low as 1.2268 against the pound, down from a session’s high of 1.2214 set at 5 pm ET. On the downside, 1.25 is possibly seen as its next support level.
Looking ahead, U.S. consumer confidence index for March, FHFA’s house price index and S&P/Case-Shiller home price index for January will be out in the New York session.