USD/CHF softens below 0.8300 amid US trade confusion

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • USD/CHF weakens to around 0.8270 in Monday’s early European session. 

  • Uncertainty and tariff concerns boost the safe-haven flows, supporting the Swiss Franc.  

  • The Fed remains in a blackout period ahead of the FOMC meeting on May 7. 


The USD/CHF pair attracts some sellers to near 0.8270 during the early European session on Monday. Trade-related uncertainties between the US and China and persistent geopolitical risks boost the safe-haven demand, benefiting the Swiss Franc (CHF). The preliminary reading of the US Gross Domestic Product (GDP) for the first quarter (Q1) and the April employment report will be the highlights later this week. 


US President Donald Trump said that there has been progress and he has talked with China’s President Xi Jinping. However, US Treasury Secretary Scott Bessent said on Sunday that he did not know if Trump had talked to Xi Jinping. Bessent further stated that he had interactions with Chinese authorities last week but did not mention tariffs. Also, Beijing has denied that trade negotiations are taking place. The uncertainty surrounding trade policy between the world's two largest economies underpins the safe-haven currency like the CHF and acts as a headwind for USD/CHF. 


Traders raise their bets that the US Federal Reserve (Fed) will resume its rate-cutting cycle in June and lower borrowing costs by one full percentage point in 2025. This, in turn, could drag the Greenback lower. Meanwhile, the Fed remains in blackout mode ahead of its Federal Open Market Committee (FOMC) meeting on May 7. 


Traders will keep an eye on the preliminary US Q1 GDP report and April employment data this week, as it might offer some hints about the Fed's next policy decisions and the US economic outlook. The expectation for April is that the US economy will add 130,000 jobs and the Unemployment Rate will remain at 4.2%. If the reports show a stronger-than-expected outcome, this could lift the US Dollar (USD) against the CHF in the near term. 

 

* 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
10 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
11 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
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
11 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
US Dollar Index stays above 99.50 ahead of PMI data, voting on Trump tax cut billThe US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, holds gains after registering losses in the previous three successive sessions.
Author  FXStreet
11 hours ago
The US Dollar Index (DXY), which tracks the US Dollar (USD) against a basket of six major currencies, holds gains after registering losses in the previous three successive sessions.
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
12 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