USD/CHF approaches 0.8100 with the Swiss Franc on the defensive

• The US Dollar ticks up from lows and approaches 0.8100 with the CHF on the defensive

• The Swiss President has failed to reach a trade deal on her visit to Washington.

• US Dollar's recovery remains limited with investors awaiting more clarity on the replacements for the Fed's vacancies.

The Swiss Franc is underperforming on Friday, hammered by a moderate risk appetite and the threat from hefty US tariffs on Swiss imports, which is boosting a mild USD/CHF recovery from Thursday’s lows at 0.8045 to levels nearing 0.8100.

The Swiss President Karin Keller-Sutter left Washington on Thursday without an agreement to avoid the 39% tariffs set by US President Donald Trump. This is one of the highest levies applied to US trading partners, and is likely to exert significant damage to the Swiss export-oriented economy.

Swiss data released on Friday revealed that the SECO Consumer Climate Index improved in the three months to July, reaching a reading of -28 from the previous month’s multi-year low of -39, but remains at relatively low levels, hinting at a weak economic outlook.

consolidating 

The US Dollar, on the other hand, is failing to take a significant advantage of a vulnerable CHF, as investors remain away from the Greenback, awaiting more clarity about the replacements of the Federal Reserve’s vacancies.

Furthermore, US Jobless Claims data released on Thursday added to the evidence of a weak US labour market and kept investors' hopes of September rate cuts alive, despite the cautious comments from St Louis Fed Governor Raphael Bostic.

All in all, the US Dollar is picking up from lows but remains trading within the weekly narrow range, between 0.8040 and 0.8120, consolidating at lower levels, following a reversal from 0.8170 after the weak US Nonfarm Payrolls report released last week.