USD/CHF Rises Above 0.7950 as Tariff Confusion Lifts US Dollar
The USD/CHF pair moved higher on Tuesday, crossing the 0.7950 level. The US Dollar (USD) gained strength as traders reacted to unclear signals from US leaders about possible tariffs on Chinese goods. This confusion has made investors more careful, and many turned to the USD as a safe choice.
At the same time, the Swiss Franc (CHF), which is also seen as a safe-haven currency, couldn’t keep up with the USD. Worries about a possible trade war between the US and China are making markets nervous.
There’s also growing talk that the Federal Reserve may delay interest rate cuts because of the strong US job market. This is also helping the Dollar stay strong. On the other hand, Switzerland’s central bank is expected to stay cautious, especially as inflation in the country remains low.
From a technical view, USD/CHF shows strength and might keep rising if the Dollar stays in demand. However, market moves now depend heavily on what happens next with US-China trade talks and upcoming FOMC meeting minutes.
Impact:
USD/CHF could stay strong if trade tensions continue and Fed officials delay rate cuts. The Swiss Franc might weaken if global uncertainty stays high.