USD/CHF Falls Below 0.8050 Because of Tariff Worries
On Friday, the USD/CHF pair went down and traded near 0.8030. This means the US dollar became weaker compared to the Swiss Franc. The reason is that traders are worried about new trade tariffs. These worries made people buy the Swiss Franc, which is known as a safe currency during tough times.
There is also news that US President Trump may send letters to over 150 countries to tell them about new tariff rules. This made traders nervous and caused them to sell the US dollar.
At the same time, strong economic news came from the US. Fewer people filed for jobless claims, and retail sales went up by 0.6% in June. This is better than expected. Because of this, traders now believe that the Federal Reserve may wait until September to cut interest rates.
Later today, more US data will be shared, including how people feel about the economy and updates on the housing market. These reports may change how traders feel about the dollar.
Impact:
The Swiss Franc might stay strong if tariff worries continue. If more US data looks good, USD/CHF could go up slowly before the next Fed meeting.