- USD/CHF remains close to the 0.8099 mark—its lowest level since September 2011.
- The US Dollar remains under pressure as investor uncertainty lingers amid the unpredictable trajectory of US trade and economic policy.
- The Swiss Franc has appreciated due to safe-haven demand amid heightened global trade tensions.
The USD/CHF pair is attempting to recover from recent losses registered in the previous session, trading around 0.8160 during Thursday’s Asian hours. However, it remains close to the 0.8099 mark—its lowest level since September 2011, touched on April 11.
The US Dollar (USD) continues to face headwinds as investor uncertainty persists due to the unpredictable nature of US trade and economic policy. In contrast, the Swiss Franc (CHF) is bolstered by safe-haven inflows, further pressuring the USD/CHF pair.
Tensions have escalated after US President Donald Trump launched an investigation into potential tariffs on key minerals, expanding the trade dispute with China. The probe includes critical sectors such as copper, pharmaceuticals, lumber, and semiconductors, underscoring concerns over the US’s limited domestic production in these industries.
Despite broader Dollar weakness, the US Dollar Index (DXY) is slightly firmer, trading near 99.60, supported by robust consumer spending data. US Retail Sales jumped 1.4% in March, beating both February’s 0.2% rise and market expectations of a 1.3% increase, data showed on Wednesday. Traders now turn their focus to upcoming US data releases, including Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and weekly Initial Jobless Claims.
Since the tariff announcement on April 2, the Swiss Franc (CHF) has appreciated more than 7%, emerging as one of the strongest major currencies. Investors are increasingly turning to the Franc as a safe-haven asset amid heightened global trade tensions and erratic policy signals from the US.
Meanwhile, the sharp appreciation of the CHF has fueled deflationary pressures in Switzerland, prompting speculation that the Swiss National Bank (SNB) might revisit the idea of reintroducing negative interest rates. Although the SNB has a history of intervening to curb Franc strength, it is now treading more carefully to avoid attracting criticism from Washington.
