- USD/CHF plunges over 5% to near 0.7985 amid weakness in the US Dollar.
- EU-US tensions over Greenland’s sovereignty have weighed on the US Dollar.
- Investors await SNB Schlegel’s speech for fresh cues on the Swiss interest rate outlook.
The USD/CHF pair is down 0.55% to near 0.7985 during the late Asian trading session on Monday. The Swiss pair faces intense selling pressure as tensions between the Eurozone and the United States (US) over Washington’s desire to purchase Greenland have weighed heavily on the US Dollar.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.25% lower to near 99.15.
On Saturday, US President Donald Trump threatened 10% tariffs on imports from several EU members, which includes Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, which will come into effect on February 1. Trump slapped additional tariffs as EU members as they condemned US plans of “complete and total purchase” of Greenland.
EU members vowed measured response against US President Trump’s tariff threats, with European Commission (EC) President Ursula von der Leyen warning through a post on X, “Territorial integrity and sovereignty are fundamental principles of international law. Tariffs would undermine transatlantic relations and risk a dangerous downward spiral.”
Meanwhile, tensions between the US and the EU over Greenland’s sovereignty have improved the safe-haven demand of the Swiss Franc (CHF), outperforming across the board.
This week, investors will pay close attention to speeches from global central bankers in the World Economic Forum (WEF) at Davos, starting from Tuesday. Swiss National Bank (SNB) Chairman Martin Schlegel is scheduled to speak at the WEF on Tuesday.
