- USD/CHF trades marginally higher to near 0.7760 as the US Dollar regains ground.
- US President Trump threatens higher tariffs on countries if they don’t honour trade deals.
- Risk-off market sentiment has been keeping the Swiss Franc broadly on the front foot.
The USD/CHF pair ticks up to near 0.7760 during the Asian trading session on Tuesday. The Swiss Franc edges higher as the US Dollar (USD) extends late Monday’s recovery move, which was driven by the expectation that uncertainty inspired by the United States (US) Supreme Court’s (SC) ruling against President Donald Trump’s tariff policy would be short-lived.
During the press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally higher to near 97.75.
On Friday, the US SC struck down President Trump’s tariff policy, stating that invoking rights under economic emergency law to back higher import duties is “unlawful”.
While market experts believe that Washington has many alternatives to offset the impact of SC’s ruling, which would keep tariffs afloat. “The markets’ initial reaction to the ruling may ultimately be short-lived, given that multiple avenues can be pursued to keep tariffs in place,” analysts at Invesco said.
In response, US President Trump has already announced 15% global tariffs and has warned countries that “playing games” with existing trade agreements could face steeper duties.
Meanwhile, the Swiss Franc (CHF) trades broadly calm due to risk-off market sentiment amid US trade policy uncertainty and tensions between the US and Iran. Negotiators from the US and Iran are scheduled to resume nuclear talks on Thursday.
