USD/CHF climbs above 0.8150 after rebounding from lowest since September 2011

أسواق الإمارات اليومApril 14, 2025

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USD/CHF rebounds from 0.8099, the lowest since September, recorded on Friday.
The Swiss Franc may regain its ground due to safe-haven demand amid escalating US-China-trade tensions.
Fed’s Kashkari stated that the economic impact of Trump’s trade war would hinge on how trade uncertainties are resolved.

The USD/CHF pair edges higher in early Asian trading on Monday, hovering around the 0.8170 mark after recording losses in the past two consecutive sessions. Market participants are eyeing the release of Switzerland’s Producer and Import Prices for March, due later in the day.

However, the upside of the USD/CHF pair could be restrained as the Swiss Franc (CHF) continues to draw support from safe-haven demand amid escalating trade tensions between the United States and China. The renewed friction has reignited fears of a global recession, prompting investors to move away from US assets.

Late last week, a series of economic indicators added to the market’s cautious tone. The University of Michigan’s Consumer Sentiment Index fell to 50.8 in April, while one-year inflation expectations jumped to 6.7%. On the inflation front, the US Producer Price Index (PPI) rose 2.7% year-over-year in March, easing from 3.2% in February. Core inflation also slowed to 3.3%. Meanwhile, initial jobless claims ticked up to 223,000, though continuing claims declined to 1.85 million—offering a mixed view of the labor market.

Adding to the uncertainty, Minneapolis Federal Reserve President Neel Kashkari, in an interview on CBS’s Face the Nation on Sunday, described the trade dispute’s impact as one of the most significant blows to confidence in the past decade—second only to the onset of the COVID-19 pandemic in March 2020. He emphasized that the extent of the economic fallout hinges on how quickly trade tensions are resolved. Moreover, the New York Fed’s Williams and the Boston Fed’s Collins warned of rising trade-related inflation risks and a likely downturn in growth.

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