USD/CHF stabilizes near 0.8600 after volatility, tariffs and recession fears support USD
The post USD/CHF stabilizes near 0.8600 after volatility, tariffs and recession fears support USD appeared on BitcoinEthereumNews.com.
USD/CHF whipsawed between 0.8450–0.8673 Monday before settling flat; volatility at highest since March 2020. Tariff threats and China’s retaliation stoke global recession fears, boosting demand for safe-haven USD. DXY climbs to 103.47; traders brace for key US CPI release that could challenge 100 bps of Fed cut bets. The USD/CHF begins Tuesday’s Asian session slightly lower, following a wild trading day on Monday, which saw swings within the 0.8450–0.8673 range, and ended virtually unchanged. At the time of writing, the major trades at 0.8588, down 0.02%. Pair trades near 0.8588 amid mixed sentiment, with investors eyeing US CPI for next directional catalyst The market mood is mixed, with one of the three US indices posting a green day, while the Volatility Index (VIX) finished at 46.98, its highest level since March 2020. Tariffs continued to be the main driver, sparking fears among investors as a global recession looms, following China’s retaliation, which imposed reciprocal tariffs of 34% on imports from the US. On Monday, Trump threatened to impose 50% tariffs on China’s products if they failed to lift levies on U.S. goods by April 8. Rumors of a 90-day pause on tariffs, except for China, revealed by White House economic adviser Hassett, were later denied by Washington, which called the comments “fake news,” thereby increasing demand for the Greenback. The US Dollar Index (DXY), which tracks the value of the US Dollar against a basket of six currencies that includes the CHF, rose 0.56% to 103.47. The US economic schedule remains empty, though traders are eyeing the release of March’s Consumer Price Index (CPI) data. If headline and core figures surprise investors and rise above estimates and the previous month’s readings, this could hurt money markets’ bets that the Federal Reserve would cut rates by almost 100 basis points, towards…
Filed under: News - @ April 7, 2025 11:23 pm