USD/CHF hits fresh monthly lows sub-0.7900 amid the risk-off mood

• The US Dollar has depreciated more than 1% so far this week, reaching fresh one-month lows at 0.7872.

• Fears of a Sino-US trade war, US shutdown, and dovish Fed comments are hammering the US Dollar.

• The risk-averse sentiment has offset the impact of downbeat Swiss macroeconomic releases this week.

The US Dollar keeps heading south against a firmer Swiss Franc amid the risk-off market mood. The pair has breached the 0.7900 level on Friday to hit one-month lows near 0.7870, on track to a 1.15% weekly sell-off.

The Greenback is suffering by a combination of investors’ concerns about the consequences pf the escalating trade tensions between IS and China, a protracted US government shutdown, and growing expectations that the Fed might have to accelerate its easing cycle over the coming months.

On Thursday, comments by Fed governor Christopher Waller and Stephen Mran pointed in that direction, after the Fed’s Beige Book warned of a slight decline in consumer spending and a stalled labour market as businesses grapple with economic uncertainty and higher costs due to trade tariffs.

Risk aversion is underpinning the Swiss Franc’s rally, despite the downbeat Swiss macroeconomic data seen this week. Producer prices contracted for the fifth consecutive month in September, and, on Thursday, the SECO Economic Forecasts anticipated a below-average 1.3% GDP growth in 2025, weighed by a significant slowdown in the second half of the year.