Created
: 2025.03.04
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CHF remains under pressure near 0.8950 as Swiss Franc strengthens on safe-haven demand
World FX news
Breaking news
USD/CHF remains under pressure near 0.8950 as Swiss Franc strengthens on safe-haven demand
New
2025.03.04 14:19
2025.03.04 14:19
2025.03.04 14:19
- USD/CHF loses ground as safe-haven demand increases amid rising concerns over a global tariff war.
- Canada's Prime Minister's Office announced plans to impose retaliatory 25% tariffs on US imports if US tariffs take effect.
- The US Dollar faced challenges due to optimism surrounding a potential Ukraine peace deal.
USD/CHF remains under pressure for the second consecutive day, hovering around 0.8960 during Tuesday's Asian session. The pair may decline further as the safe-haven Swiss Franc (CHF) strengthens amid escalating risk-off sentiment driven by growing concerns over a global tariff war.
On Monday, the White House confirmed that President Trump signed an order raising tariffs on Chinese imports to 20%, while similar measures for Mexico and Canada are still pending. Trump also reiterated that reciprocal tariffs will take effect on April 2 for countries imposing duties on US goods.
In response, Canada's Prime Minister's Office stated that Canada will implement 25% retaliatory tariffs on US imports starting Tuesday if US tariffs proceed. Meanwhile, China's Commerce Ministry announced early Tuesday that it would take "necessary countermeasures" to protect its legitimate rights and interests.
The US Dollar Index (DXY), which tracks the USD against six major currencies, has climbed to near 106.60. However, the Greenback faces downward pressure as optimism surrounding a potential Ukraine peace deal reduces demand for safe-haven assets. European leaders have voiced support for security guarantees for Ukraine, further boosting global risk sentiment.
US ISM Manufacturing PMI dipped to 50.3, falling short of expectations (50.5) and declining from January's 50.9. Conversely, S&P Global's final Manufacturing PMI for February exceeded forecasts at 52.7, improving from its preliminary estimate.
Investors now shift their focus to upcoming US labor market data, with the ADP employment report due on Wednesday and the Nonfarm Payrolls report on Friday, which could provide further insights into the Federal Reserve's (Fed) interest rate outlook.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland's official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country's economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc's value, causing a turmoil in markets. Even though the peg isn't in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country's currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year - once every quarter, less than other major central banks - to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc's (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank's currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland's main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
Last updated
: 2025.03.04
Related articles
Pound Sterling holds onto gains against US Dollar on mounting Fed dovish bets
11 minutes agoGold props up gains after tit-for-tat trade war emerges
27 minutes agoUSD/CNH: Potential for USD to rise to 7.3250 - UOB Group
31 minutes agoChina: CPI inflation likely negative in February - Standard Chartered
34 minutes agoUSD/JPY can trade in a range between 148.50 and 150.50 - UOB Group
36 minutes agoNZD/USD: Expected to continue to trade between 0.5590 and 0.5640 - UOB Group
42 minutes ago
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Pound Sterling holds onto gains against US Dollar on mounting Fed dovish bets
The Pound Sterling (GBP) trades firm near 1.2700 against the US Dollar (USD) in Tuesday's European session.
New
2025.03.04 18:56Gold props up gains after tit-for-tat trade war emerges
Gold's price (XAU/USD) edges higher and trades around $2,910 at the time of writing on Tuesday after surging over 1% the prior day.
New
2025.03.04 18:39USD/CNH: Potential for USD to rise to 7.3250 - UOB Group
US Dollar (USD) is likely to edge higher vs Chinese Yuan (CNH); mild momentum suggests any advance is likely limited to a test of 7.3150. Strong advance indicates there is potential for USD to rise to 7.3250, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.03.04 18:36Silver price today: Silver rises, according to FXStreet data
Silver prices (XAG/USD) rose on Tuesday, according to FXStreet data.
New
2025.03.04 18:33China: CPI inflation likely negative in February - Standard Chartered
Official manufacturing PMI rebounded in February; 2-month average suggests steady production activity. Trade performance likely weakened last month due to both the holiday and tariff impact. CPI may have dropped y/y on a fall in prices of food, fuel and services, as well as a high base effect.
New
2025.03.04 18:32USD/JPY can trade in a range between 148.50 and 150.50 - UOB Group
Outlook is unclear; US Dollar (USD) could trade in a range between 148.50 and 150.50 vs Japanese Yen (JPY). In the longer run, bias for USD is slightly tilted to the downside; unclear for now whether it can break and stay below 148.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.03.04 18:30Cocoa prices decline on fading supply fears - ING
The cocoa market continues to sell off, with London cocoa pulling back aggressively. The nearly 11% drop yesterday has cocoa trading at its lowest level since November, ING's commodity experts Ewa Manthey and Warren Patterson note.
New
2025.03.04 18:27NZD/USD: Expected to continue to trade between 0.5590 and 0.5640 - UOB Group
New Zealand Dollar (NZD) is expected to continue to trade in a range vs US Dollar (USD), most likely between 0.5590 and 0.5640. In the longer run, room for NZD to continue to weaken; it remains to be seen if 0.5565 is within reach, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
2025.03.04 18:24USD/JPY: Short bias on the day - OCBC
USD/JPY fell below 149-levels this morning amid sharp pullback in UST yields. Pair was last at 148.98, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
2025.03.04 18:21Silver Price Forecast: XAG/USD climbs to $31.80-$31.85 zone; upside potential seems limited
Silver (XAG/USD) attracts buyers for the second straight day on Tuesday and moves further away from a nearly four-week low, around the $30.85-$30.80 region touched last Friday.
New
2025.03.04 18:05Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
