USD/CHF hesitates at 0.8000 following Swiss inflation figures

USD/JPY edges down from session highs above 0.8000 following Swiss CPI figures.
Swiss Inflation increases, easing pressure on the SNB to cut interest rates.
The risk-averse sentiment keeps the US Dollar dips limited on Thursday.

Guillermo Alcala FXStreet

The US Dollar (USD) is trading higher against the Swiss Franc (CHF) on Thursday. The pair bounced up from lows near 0.7900 on Wednesday, but it is struggling to confirm above the 0.8000 psychological level, despite the release of softer-than-expected Swiss inflation figures.

Data released by the Swiss Federal Statistical Office on Thursday showed that the Consumer Price Index (CPI) accelerated to 0.3% year-on-year in March, from 0.1% in February, but remained well below the 0.5% forecast by market analysts.

The monthly consumer inflation eased to a 0.2% growth, from 0.6% in February, also below the 0.5% market consensus.

Swiss inflation at one-year high

The higher price of heating oil has been cited as the main driver of the uptick in consumer prices, underscoring the inflationary impact of the war in Iran. Energy prices have boosted yearly inflation to its highest level in one year, which might ease pressure on the Swiss National Bank (SNB) to cut interest rates into negative levels, and provide some support to the Swissie.

Swiss Franc’s upside attempts, however, are likely to remain limited on Thursday. The risk-averse market sentiment following investors’ disappointment at US President Trump’s address on Wednesday is keeping the US Dollar buoyed against its main peers.

Trump stuck to his bellicose rhetoric in a short televised speech on Wednesday, pledging “crushing, broader and destructive” attacks on Iran, after having suggested a swift end to the war the previous day. The speech left investors puzzled, resurfacing the risk-off trade witnessed in March, with equities dropping sharply and the US Dollar and Crude prices soaring.

(This story was corrected on April 2 at 09:30 GMT to amend the name of the Swiss central bank, to SNB, instead of SBB, as previously written.)

Economic Indicator

Consumer Price Index (MoM)

The Consumer Price Index (CPI), released by the Swiss Federal Statistical Office on a monthly basis, measures the change in prices of goods and services which are representative of the private households’ consumption in Switzerland. The CPI is the main indicator to measure inflation and changes in purchasing trends. The MoM figure compares the prices of goods in the reference month to the previous month. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

Economic Indicator

Consumer Price Index (YoY)

The Consumer Price Index (CPI), released by the Swiss Federal Statistical Office on a monthly basis, measures the change in prices of goods and services which are representative of the private households’ consumption in Switzerland. The CPI is the main indicator to measure inflation and changes in purchasing trends. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Swiss Franc (CHF), while a low reading is seen as bearish.

GBP/USD extends the drop to 1.3360

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EUR/USD stays offered just above 1.1400

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Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.