USD/CHF tumbles below 0.8450 amid risk-off mood, eyes on FOMC Minutes
The post USD/CHF tumbles below 0.8450 amid risk-off mood, eyes on FOMC Minutes appeared on BitcoinEthereumNews.com.
USD/CHF trades in negative territory for the third consecutive day around 0.8435 in Wednesday’s early European session. Rising risk aversion amid tariff turmoil boosts the Swiss Franc, a safe haven currency. US trade tariffs potentially push the SNB closer to negative interest rates with inflation near zero. The USD/CHF pair extends its downside to near 0.8435 during the early European session. The Swiss Franc (CHF) edges higher against the US Dollar (USD) as traders seek refuge from the intensifying market turmoil caused by US President Donald Trump’s sweeping tariffs and fears of a global recession. Worries about the economic slowdown and potential recession in the United States exert some selling pressure on the Greenback as markets return to pricing in more rate cuts from the Federal Reserve (Fed) this year. The markets have priced in a nearly 65% chance of a Fed cut in May, and futures now point to about 100 basis points (bps) worth of rate reductions by December, according to the CME FedWatch tool. Late Tuesday, US Customs and Border Protection said that it is prepared to begin collecting country-specific tariffs from 86 US trade partners. Trump noted that he wasn’t considering a pause on his plan to implement sweeping additional tariffs on dozens of countries despite contact from trade partners seeking to avoid the levies but hinted he would be open to some negotiations. The uncertainty surrounding trade policy and fears of global recession by Trump’s policy could boost the CHF, a safe-haven currency. Trump shocked world markets by announcing reciprocal tariffs for most of the global economy and imposed heavier tariffs for Switzerland than its neighbors in the European Union or Britain. This prompted economists to trim forecasts for Swiss economic growth and expect that the Swiss National Bank (SNB) will again cut the interest rates. Markets…
Filed under: News - @ April 9, 2025 7:21 am