USD/CHF Slips Near 0.7980 as Safe-Haven Demand Rises and US Dollar Weakens
The USD/CHF pair dropped close to 0.7980 on Monday as investors moved toward safe-haven currencies like the Swiss Franc. The main reason was growing fear around possible new tariffs from the US, which led to less demand for the US Dollar.
There are talks that the US might soon impose new tariffs, though it’s not clear which countries will be affected or when these tariffs will start. Originally expected around July 9, the announcement might now be delayed to August 1. This uncertainty made traders nervous and pushed them to safer assets, which boosted the CHF.
Earlier, the US Dollar had fallen to a 14-year low near 0.7875. However, strong US job data—especially the Nonfarm Payrolls report—helped the dollar recover slightly. Even so, concerns about trade tensions, global growth slowdown, and rising inflation are still hurting market confidence.
All eyes are now on the upcoming Federal Reserve meeting minutes. Some Fed officials have hinted at a possible shift toward a looser policy. If that happens, it might put more pressure on the dollar.
Impact:
The Swiss Franc might stay strong due to safe-haven buying. The US Dollar could stay weak if tariff concerns grow and the Fed leans toward rate cuts or dovish policies.