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

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • 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.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
GBP/USD falls to near 1.3400 following mixed UK PMI dataGBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
Author  FXStreet
13 hours ago
GBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
placeholder
EUR/USD briefly dips as Eurozone PMIs unexpectedly declineEUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
Author  FXStreet
13 hours ago
EUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
placeholder
AUD/JPY falls below 92.50, further downside appears due to rising odds of BoJ rate hikesAUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
Author  FXStreet
14 hours ago
AUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
placeholder
Forex Today: Attention turns to May PMI data from major economiesThe trading action in financial markets remain relatively quiet early Thursday as investors gear up for preliminary Purchasing Managers Index (PMI) data from Germany, the Eurozone, the UK and the US.
Author  FXStreet
14 hours ago
The trading action in financial markets remain relatively quiet early Thursday as investors gear up for preliminary Purchasing Managers Index (PMI) data from Germany, the Eurozone, the UK and the US.
placeholder
USD/CHF extends downside to near 0.8250, US PMI data in focusThe USD/CHF pair extends the decline to around 0.8250 during the early European session on Thursday. The Greenback weakens against the Swiss Franc (CHF) due to US fiscal concerns. Traders will take more cues from the advanced US S&P Purchasing Managers Index (PMI) for May. 
Author  FXStreet
15 hours ago
The USD/CHF pair extends the decline to around 0.8250 during the early European session on Thursday. The Greenback weakens against the Swiss Franc (CHF) due to US fiscal concerns. Traders will take more cues from the advanced US S&P Purchasing Managers Index (PMI) for May. 
Real-time Quote