- USD/CHF falls as the US Dollar weakens amid White House economic policy uncertainty.
- President Trump imposed new 10% tariffs despite a Supreme Court block on part of his duties.
- The Swiss Franc gains as expectations for near-term SNB rate cuts continue to fade.
USD/CHF extends its losing streak for the fifth consecutive day, trading around 0.7720 during the Asian hours on Thursday. The pair trades on the back foot as the Swiss Franc (CHF) benefits from safe-haven demand amid renewed trade tensions.
US President Donald Trump moved forward with fresh 10% tariffs on trading partners, despite the Supreme Court of the United States (US) blocking part of his proposed duties. In his State of the Union address, Trump said the US economy is rebounding, defended tariffs as supportive of growth, and criticized the Court’s decision to strike down elements of his trade policy.
The Swiss Franc is supported by fading expectations of near-term rate cuts from the Swiss National Bank (SNB). Swiss inflation held steady at 0.1% in January, remaining at the lower end of the SNB’s 0–2% target range and broadly in line with its first-quarter outlook. Policymakers are widely expected to keep rates unchanged for now, as inflation is projected to gradually rise.
Meanwhile, the Swiss ZEW Expectations Index improved sharply to 9.8 in February from -4.7 in January, marking its second-highest level since January last year, reflecting growing expectations that the SNB will maintain its policy rate at 0% through 2026.
Looking ahead, markets will focus on Switzerland’s Q4 Employment data later in the day and Q4 GDP figures due Friday. In the US, Weekly Initial Jobless Claims are scheduled for release during the North American session.
