USD/CHF extends downside to near 0.7940 on US government shutdown
- USD/CHF extends its downside to near 0.7940 as the US government enters a shutdown.
- US President Trump warns that he will cut the benefits program favoured by Democrats.
- SNB’s Schlegel hopes inflation will rise in the coming quarters.
The USD/CHF pair slides further to 0.7940 during the European trading session on Wednesday. The Swiss Franc pair weakens as the US Dollar (USD) extends its downside, following the United States (US) government shutdown.
On Tuesday, Republicans and Democrats failed to secure the approval of a short-term funding bill, which could have extended the shutdown deadline to November 21.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls further to near 97.40, the lowest level seen in a week.
This is the 15th time since 1981 that the US government has entered a shutdown, and the second under President Donald Trump’s leadership.
The impact of the US government shutdown on the US Dollar and the economic outlook will largely depend on how long the statistical agencies remain closed. The longer the time period, the larger the impact on domestic operations and the US currency.
In response, US President Donald Trump has threatened to announce irreversible cuts in programs favoured by Democrats for letting Washington go into the dark. “They’re taking a risk by having a shutdown. We can do things during the shutdown that are irreversible, that are bad for them,” Trump said, Time Magazine reported.
Meanwhile, the Swiss Franc (CHF) trades firmly against its peers, except the Japanese Yen (JPY), as Swiss National Bank (SNB) Chairman Martin Schlegel has expressed confidence that inflationary pressures would “accelerate” in coming quarters. “Economic Indicators suggest a stable situation and moderate growth, while US pharma tariffs have raised downside risks a bit,” Schlegel said on Tuesday.
De-anchoring inflation expectations on the upside would be a relief for the SNB, which has been facing risks of pushing interest rates into negative territory.
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 Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.12% | -0.27% | -0.05% | 0.15% | -0.16% | -0.21% | |
| EUR | 0.19% | 0.09% | -0.09% | 0.14% | 0.37% | 0.05% | -0.02% | |
| GBP | 0.12% | -0.09% | -0.12% | 0.05% | 0.28% | -0.02% | -0.10% | |
| JPY | 0.27% | 0.09% | 0.12% | 0.22% | 0.39% | 0.33% | 0.14% | |
| CAD | 0.05% | -0.14% | -0.05% | -0.22% | 0.21% | -0.09% | -0.16% | |
| AUD | -0.15% | -0.37% | -0.28% | -0.39% | -0.21% | -0.31% | -0.38% | |
| NZD | 0.16% | -0.05% | 0.02% | -0.33% | 0.09% | 0.31% | -0.07% | |
| CHF | 0.21% | 0.02% | 0.10% | -0.14% | 0.16% | 0.38% | 0.07% |
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
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
