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The USD/CHF pair loses traction to near 0.7780 during the early European session on Tuesday. The US Dollar (USD) softens against the Swiss Franc (CHF) as a partial US government shutdown delays Nonfarm Payrolls data and raises concerns over the political stability in the US. 

The House Rules Committee advanced a funding package late Monday. A full House floor vote is expected on Tuesday, which could end the shutdown if passed and signed by US President Donald Trump. This is the second government shutdown within a few months, after a record-breaking 43-day shutdown that ended in November 2025. If the current partial US shutdown extends, this could undermine confidence in US governance and exert some selling pressure on the Greenback. 

Meanwhile, the United States (US) and Iran may hold diplomatic talks in Istanbul later on Friday as Trump weighs a possible military strike on the Islamic Republic. Traders will closely monitor the developments surrounding peace negotiations. Any signs of rising tensions between the US and Iran could boost traditional safe-haven currencies, such as the Swiss Franc and create a headwind for the pair. 

On the other hand, the positive US economic data might help limit the USD’s losses. The Institute for Supply Management's (ISM) revealed on Monday that the US Manufacturing Purchasing Managers' Index (PMI) climbed to 52.6 in January, versus 47.9 prior. This reading beats the forecast of 48.5 and registered the strongest expansion since 2022. Traders reduced bets on Federal Reserve (Fed) rate cuts following the upbeat PMI data. Money markets showed the next reduction coming in July.

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