USD/CHF trade with mild negative bias below 0.8300; downside seems cushioned

• USD/CHF ticks lower on Thursday and snapped a two-day winning streak to a nearly two-week high.

• The uncertainty over Trump’s trade policies and Fed rate cut bets weigh on the USD and the pair.

• A positive risk tone undermines demand for the safe-haven CHF and limits losses for spot prices.

The USD/CHF pair fails to capitalize on a two-day-old recovery from the lowest level since September 2011 and attracts some sellers during the Asian session on Thursday. Spot prices, however, lack bearish conviction and currently trade just below the 0.8300 mark, down 0.25% for the day and close to a nearly two-week high touched on Wednesday.

Despite easing fears about the Federal Reserve's (Fed) independence, the US Dollar (USD) bulls remain on the sidelines amid the weakening confidence in the US economy on the back of the uncertainty about US President Donald Trump's trade policies. Apart from this, the prospects for more aggressive policy easing by the Fed fail to assist the USD to build on this week's bounce from a multi-year low, which, in turn, acts as a headwind for the USD/CHF pair.

Meanwhile, US Treasury Secretary Scott Bessent tempered market expectations for a quick resolution to the US-China trade standoff. However, signs of easing trade tensions between the world's two largest economies remain supportive of a generally positive tone around the equity markets. This is seen undermining demand for the safe-haven Swiss Franc (CHF) and lending some support to the USD/CHF pair, warranting some caution for bearish traders.

Traders now look forward to the US economic docket – featuring the release of the usual Weekly Initial Jobless Claims, Durable Goods Orders, and Existing Home Sales data later during the early Norther American session. Apart from this, trade-related developments will influence the USD price dynamics, which, along with the broader risk sentiment, should provide short-term impetuses to the USD/CHF pair.