- USD/CHF continues to trade near 0.8099, a level not seen since September 2011.
- Ongoing uncertainty around US trade and economic direction keeps the US Dollar under pressure.
- The Swiss Franc has strengthened as investors seek safety amid rising global trade concerns.
USD/CHF Attempts Modest Recovery, Trades Near 0.8160
During Thursday’s Asian session, the USD/CHF pair is trying to rebound from prior losses, currently hovering around 0.8160. Despite the recovery effort, the pair remains near the 0.8099 level — a low not seen since September 2011, which was reached on April 11.
Dollar Faces Pressure from Policy Uncertainty
The US Dollar remains under pressure as market participants continue to digest growing uncertainty surrounding US trade and economic policies. In contrast, the Swiss Franc benefits from its safe-haven appeal, keeping the USD/CHF pair subdued.
US-China Trade Tensions Escalate
Investor sentiment took another hit following President Donald Trump’s decision to initiate a probe into possible tariffs on key raw materials. The investigation targets critical sectors such as copper, lumber, pharmaceuticals, and semiconductors — highlighting concerns about the US’s dependence on foreign suppliers in these strategic areas and intensifying trade friction with China.
Dollar Index Supported by Strong Retail Sales Data
Despite the broader weakness in the greenback, the US Dollar Index (DXY) has seen mild support, trading close to 99.60. This comes on the back of upbeat consumer spending data, with US Retail Sales rising 1.4% in March — outperforming February’s 0.2% increase and topping expectations of a 1.3% gain. Market attention now shifts to upcoming US economic reports, including Building Permits, Housing Starts, the Philly Fed Index, and Initial Jobless Claims.
Swiss Franc Rallies on Risk Aversion, SNB Under Scrutiny
Since the tariff probe announcement on April 2, the Swiss Franc has gained over 7%, solidifying its position as one of the top-performing major currencies. Its surge is fueled by rising demand for safe-haven assets amid global uncertainty and erratic policy shifts from Washington.
However, the Franc’s sharp appreciation has led to growing deflationary risks within Switzerland. This has sparked speculation that the Swiss National Bank (SNB) could revisit the idea of reintroducing negative interest rates. While the SNB has historically intervened to temper Franc strength, it is currently proceeding with more caution to avoid potential backlash from US authorities.
