USD/CHF SLUMPS TO NEAR 0.8550 AMID TRUMP TARIFF UNCERTAINTY, US NFP DATA IN FOCUS
USD/CHF SLUMPS TO NEAR 0.8550 AMID TRUMP TARIFF UNCERTAINTY, US NFP DATA IN FOCUS
The USD/CHF currency pair has experienced a notable decline, slumping to approximately 0.8550.
This movement is primarily driven by market uncertainty surrounding President Donald Trump's newly announced tariff measures and anticipation of the upcoming U.S. Non-Farm Payrolls (NFP) report.
President Trump has proposed a 10% baseline tariff on all imports, with higher rates for specific countries, including 20% for the European Union and 24% for Japan.
Additionally, China faces a cumulative 64% duty when considering previous tariffs.
These measures have raised concerns about a potential global trade war, leading investors to seek refuge in safe-haven currencies like the Swiss Franc (CHF).
The U.S. administration's decision to impose a 31% tariff on Switzerland, citing a 61% tariff on U.S. exports, has further strained relations, contributing to the CHF's appreciation.
In response to tariff uncertainties, the U.S. dollar weakened, reaching six-month lows against major currencies, including the CHF.
Investors' flight to safety resulted in the CHF strengthening, with USD/CHF hitting levels not seen since October 2024.
