USD/CHF maintains position above 0.8300 due to US-China trade optimism

• USD/CHF appreciates as the US Dollar is strengthening, as investor sentiment improves.

• AmCham China President Michael Hart remarked that it's encouraging to see the US and China reviewing tariffs.

• Analysts argue that currency intervention by the SNB may be more effective than additional rate cuts.

USD/CHF recovered its previous session losses and is trading around 0.8320 during the Asian session on Friday. The US Dollar (USD) is strengthening as investor sentiment improves, driven by a Bloomberg report suggesting China may suspend its 125% tariffs on select US imports, including medical equipment, ethane, and aircraft leasing.

Sources familiar with the matter indicated that Chinese officials are particularly considering a waiver on tariffs for aircraft leases. However, China’s Ministry of Finance and the General Administration of Customs have yet to issue any official comments.

Michael Hart, President of the American Chamber of Commerce in China, remarked that it's encouraging to see the US and China reviewing tariffs. Hart noted that while exclusion lists for specific categories are reportedly in the works, no official announcements or policies have been released yet. Both China’s Ministry of Commerce and the US Department of Commerce are currently gathering input on the matter.

Optimism around US trade negotiations is also supporting the Greenback, with Reuters reporting progress in early talks with key Asian allies such as South Korea and Japan. The Trump administration could reduce tariffs on Chinese imports, depending on the progress of potential talks with Beijing. China expressed a willingness to engage in discussions.

However, the Swiss Franc (CHF) gained ground, reaching its strongest level in over a decade against the USD as of April 21. This strength is largely due to increased demand for safe-haven assets amid global trade uncertainties.

The appreciation of the CHF has put downward pressure on import prices, challenging the Swiss National Bank’s (SNB) inflation target of 0–2%, especially with inflation hovering near zero. With the SNB’s key interest rate at just 0.25% and likely to decline further, analysts believe that currency intervention may be a more effective approach than rate cuts. Nonetheless, the SNB has reiterated that it does not manipulate the currency, emphasizing that any interventions are solely aimed at maintaining price stability.