- USD/CHF flattens near 0.8340 as the US Dollar bounces back.
- Moody’s downgraded the US Sovereign Credit rating to Aa1 from Aaa.
- The SNB opened doors to negative interest rates amid global economic uncertainty.
The USD/CHF pair flattens around 0.8340 during North American trading hours on Tuesday after clawing back initial losses. The Swiss Franc pair rebounds as the US Dollar Index (DXY) bounced back after attracting bids near the weekly low around 100.00.
Earlier in the day, the US Dollar traded lower as Moody’s downgraded the United States (US) Sovereign Credit Rating due to mounting debt concerns. Additionally, fresh concerns over de-escalation in the US-China trade war had also weighed on the US Dollar. Beijing condemns Washington for discouraging the use of Huawei-made Artificial Intelligence (AI) chips and Chinese AI models, highlighting them as a threat to US export controls.
Domestically, investors await the flash S& Global Purchasing Managers’ Index (PMI) data for May, which will be released on Thursday. The PMI report is expected to show that the overall business activity grew at a steady pace.
Meanwhile, the Swiss Franc (CHF) trades higher against its major peers, but is expected to be driven by market expectations for the Swiss National Bank’s (SNB) monetary policy outlook. SNB Chairman Martin Schlegel has signaled that the central bank is ready to consider negative interest rates to battle against global economic risks.
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 | 0.03% | 0.09% | 0.07% | -0.15% | 0.91% | 0.48% | -0.09% | |
| EUR | -0.03% | 0.07% | 0.03% | -0.18% | 0.89% | 0.47% | -0.12% | |
| GBP | -0.09% | -0.07% | -0.04% | -0.25% | 0.79% | 0.42% | -0.15% | |
| JPY | -0.07% | -0.03% | 0.04% | -0.23% | 0.83% | 0.40% | -0.12% | |
| CAD | 0.15% | 0.18% | 0.25% | 0.23% | 1.07% | 0.64% | 0.10% | |
| AUD | -0.91% | -0.89% | -0.79% | -0.83% | -1.07% | -0.42% | -0.96% | |
| NZD | -0.48% | -0.47% | -0.42% | -0.40% | -0.64% | 0.42% | -0.54% | |
| CHF | 0.09% | 0.12% | 0.15% | 0.12% | -0.10% | 0.96% | 0.54% |
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).
USD/CHF gauges cushion near the horizontal support plotted from the April 25 low of 0.8335, which used to be a major resistance for the pair. The asset wobbles around the 20-day Exponential Moving Average (EMA), which trades around 0.8340, indicating a sideways trend.
The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00, suggesting a volatility contraction.
A fresh upside move in the pair towards the April 10 high of 0.8580 and the April 8 high of 0.8611 would appear if it breaks above the psychological level of 0.8500.
On the flip side, a downside move below the May 7 low of 0.8186 would drag the asset towards the April 11 low of 0.8100, followed by the April 21 low of 0.8040.
USD/CHF daily chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD grinds higher toward 1.1600 amid risk reset
EUR/USD stretches further north toward 1.1600 in European trading on Monday amid an extended US Dollar downturn. Traders overlook escalating Israel-Iran conflict amid improving market sentiment, bracing for the Fed policy decision due on Wednesday.
GBP/USD advances toward 1.3600 as US Dollar loses ground
GBP/USD extends its rebound toward 1.3600 in Monday's European session, helped by a continued selling wave around the US Dollar. Markets seem to look past the deepening Middle East conflict, resorting to position adjustments ahead of the Fed and BoE policy announcements later this week.
Gold price sticks to intraday losses above $3,400 amid receding haven demand
Gold price holds its steady retreat from a nearly two-month peak while defending the $3,400 mark in the European session on Monday. A generally positive tone around the equity markets is seen as a key factor undermining the safe-haven bullion, which now seems to have snapped a three-day winning streak.
Seven fundamentals for the week: Iran-Israel war, Fed to fire up tariff-troubled markets Premium
When will the Fed cut interest rates? That question competes with the Israel-Iran war and the fate of the tariffs America slaps on its peers. US retail sales and interest rate decisions in Japan and the UK keep things lively as well.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.