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USD/CHF climbs as market sentiment improves despite US-China trade tensions

  • USD/CHF climbs towards 0.8050, supported by a slight rebound in market sentiment.
  • Trade tensions between the United States and China keep investors cautious after new tariff threats.
  • In Switzerland, investors await Tuesday’s Producer and Import Prices data to gauge deflationary pressures.

USD/CHF holds firm around 0.8050 on Monday, up 0.80% for the day at the time of writing, as markets digest the latest trade threats from US President Donald Trump toward China. Despite a more conciliatory tone on Sunday in a social media post, investors remain cautious, fearing that rising tensions could escalate into a full-blown trade war.

On Friday, Trump’s surprise announcement of additional 100% tariffs on Chinese imports triggered a nearly 1% drop in the US Dollar Index (DXY), reviving fears of a major economic confrontation. In response, Chinese authorities defended their restrictions on rare earth exports and stated they were ready to retaliate against any further US tariff increases.

However, the easing in trade tensions on Sunday lifts market sentiment, allowing the US Dollar (USD) to rebound and keep the USD/CHF pair firm around 0.8050. The broader trend remains constructive since mid-September, supported by renewed demand for the Greenback. Investors continue to monitor the ongoing US government shutdown and its potential implications for overall economic confidence.

In Switzerland, Tuesday’s release of September’s Producer and Import Prices Index could shed light on inflation dynamics. After four consecutive months of contraction, a rebound is expected, which could ease pressure on the Swiss National Bank (SNB) to further loosen monetary policy.

Swiss Franc Price Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.46%0.16%0.26%0.28%-0.02%0.31%0.45%
EUR-0.46%-0.29%-0.14%-0.19%-0.39%-0.15%-0.02%
GBP-0.16%0.29%0.20%0.11%-0.11%0.14%0.25%
JPY-0.26%0.14%-0.20%-0.04%-0.34%0.07%0.13%
CAD-0.28%0.19%-0.11%0.04%-0.34%0.05%0.15%
AUD0.02%0.39%0.11%0.34%0.34%0.26%0.37%
NZD-0.31%0.15%-0.14%-0.07%-0.05%-0.26%0.11%
CHF-0.45%0.02%-0.25%-0.13%-0.15%-0.37%-0.11%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

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