- USD/CHF remains under pressure when worries grow in connection with the potential economic influence of American tariffs.
- The CME Fedwatch tool suggested the first reduction of the FED rate in July.
- Swiss Frank gained strength after Switzerland reported better than expected commercial balance data.
USD/CHF He slightly slipped into Friday’s Asian trading hours, floating around 0.8180, after publishing profits in the previous session. The couple is under pressure as American dollar It weakens in connection with the growing fears of economic fall from American tariffs. Market activity remains muted due to holidays on Good Friday.
Chairman of the Federal Reserve Jerome Powell He warned that continued inflation in conjunction with a sluggish economy could threaten the double Fed fine, raising the spectrum of staglation. The sentiment was additionally dent after President Trump criticized the last comments of Powell. Despite this, the CME Fedwatch tool shows that the markets are now valued at about 86 base points of rate reductions by the end of 2025, and the first expected in July.
Meanwhile, the Swiss Frank (CHF) strengthened on Thursday after confident commercial balance data from Switzerland. The commercial surplus expanded to 6.35 billion CHF in March from 4.80 billion CHF in February – the largest since October 2024 – driven 12.6% boost in exports compared to a 10.4% boost in import.
CHF has gained against USD, floating near the strongest level since 2011, because the escalation trade tensions of USA-chin fuel recession fears and strengthens the demand for a protected Swiss currency. However, US President Donald Trump stated on Thursday that China had made many overtures and added: “I do not want to go higher at China’s tariffs. If China Tariffs go higher, people do not buy.” Trump has confident that a trade agreement with China can be achieved within three to four weeks.
(This story was improved on April 18 at 06:50 GMT to say in the second paragraph that the sentiment was additionally dent after President Trump criticized the last comments of Powell, and not former President Trump).
FAQ of the Swiss franc
Frank Swiss (CHF) is the official currency of Switzerland. This is one of the ten most rotating currencies around the world, reaching volumes that significantly exceed the size of the Swiss economy. Its value depends on the broad market mood, the economic health of the country or the actions taken by the Swiss National Bank (SNB). In the years 2011–2015 the Swiss Frank was set at EURO (EUR). PEG was suddenly removed, which caused an boost in the franc value by over 20%, causing confusion in the markets. Although PEG does not apply, CHF fortunes are usually strongly correlated from the euro due to the high dependence of the Swiss economy from the neighboring euro area.
FRANC (CHF) Swiss is considered to be protected or currency, which investors buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a robust export sector, vast central bank reserves or a long -term political position towards the neutrality of global conflicts make the country’s currency a good choice for investors escaping from risk. Turbulent times will probably strengthen CHF in relation to other currencies that are seen as more risky to invest.
The Swiss National Bank (SNB) meets four times a year – once a quarter, less than other vast central banks – decide about monetary policy. The bank is aimed at an annual inflation rate less than 2%. When the inflation is above the target or it is expected that it will be above the target in the foreseeable future, the bank will try to tame the boost in prices, raising the policy rate. Higher interest rates are generally positive for the Swiss franc (CHF) because they lead to higher crops, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
The release of macroeconomic data in Switzerland is the key to assessing the state of the economy and can affect the valuation of the Swiss Francang (CHF). The Swiss economy is essentially stable, but any sudden change in economic growth, inflation, current account or central bank foreign reserves can potentially cause CHF movements. Basically high economic growth, low unemployment and high trust are good for CHF. And vice versa, if economic data indicate a weakening rush, CHF probably absorbs.
As a tiny and open economy, Switzerland is strongly dependent on the health of neighboring euro -zone economies. The wider European Union is the main economic partner of Switzerland and a key political ally, so the stability of macroeconomic and monetary policy in the euro area is necessary for Switzerland, and therefore for Swiss franc (CHF). With such a relationship, some models suggest that the correlation between the fate of the euro (EUR) and CHF is over 90%or is close to the ideal.
Branded content
Finding a suitable broker for a trade strategy is necessary, especially when specific functions make a difference. Browse our selection of the best brokers, each of which offers unique advantages that match your needs.
