Created
: 2025.04.28
- 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 softens below 0.8300 amid US trade confusion
Breaking news
USD/CHF softens below 0.8300 amid US trade confusion
New
2025.04.28 15:36
2025.04.28 15:36
2025.04.28 15:36
- USD/CHF weakens to around 0.8270 in Monday's early European session.
- Uncertainty and tariff concerns boost the safe-haven flows, supporting the Swiss Franc.
- The Fed remains in a blackout period ahead of the FOMC meeting on May 7.
The USD/CHF pair attracts some sellers to near 0.8270 during the early European session on Monday. Trade-related uncertainties between the US and China and persistent geopolitical risks boost the safe-haven demand, benefiting the Swiss Franc (CHF). The preliminary reading of the US Gross Domestic Product (GDP) for the first quarter (Q1) and the April employment report will be the highlights later this week.
US President Donald Trump said that there has been progress and he has talked with China's President Xi Jinping. However, US Treasury Secretary Scott Bessent said on Sunday that he did not know if Trump had talked to Xi Jinping. Bessent further stated that he had interactions with Chinese authorities last week but did not mention tariffs. Also, Beijing has denied that trade negotiations are taking place. The uncertainty surrounding trade policy between the world's two largest economies underpins the safe-haven currency like the CHF and acts as a headwind for USD/CHF.
Traders raise their bets that the US Federal Reserve (Fed) will resume its rate-cutting cycle in June and lower borrowing costs by one full percentage point in 2025. This, in turn, could drag the Greenback lower. Meanwhile, the Fed remains in blackout mode ahead of its Federal Open Market Committee (FOMC) meeting on May 7.
Traders will keep an eye on the preliminary US Q1 GDP report and April employment data this week, as it might offer some hints about the Fed's next policy decisions and the US economic outlook. The expectation for April is that the US economy will add 130,000 jobs and the Unemployment Rate will remain at 4.2%. If the reports show a stronger-than-expected outcome, this could lift the US Dollar (USD) against the CHF in the near term.
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
: 2025.04.28
Related articles
Fed's Jefferson: Will keep policy in a place to be sure inflation expectations remain anchored
2 minutes agoNZD/USD recovers above 0.5900 as traders weigh US downgrade, mixed New Zealand data
4 minutes agoUSD/JPY can hold around 145 on a 1-to-3-month view - Rabobank
19 minutes agoFed's Williams flags cautious optimism amid lingering uncertainty
39 minutes agoWhite House's Hassett: Moody's decision is backward-looking
45 minutes agoMexican Peso steadies as Moody's downgrade pressures the US Dollar
2025.05.19 21:28
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
Fed's Jefferson: Will keep policy in a place to be sure inflation expectations remain anchored
Federal Reserve (Fed) Vice Chairman Philip Jefferson said on Monday that there are risks to both jobs and inflation and added that it is appropriate to wait and see on rate decisions, given the the uncertainty, per Reuters.
New
2025.05.19 22:39NZD/USD recovers above 0.5900 as traders weigh US downgrade, mixed New Zealand data
The New Zealand Dollar (NZD) is recovering firmly above the 0.5900 mark agains the US Dollar (USD) on Monday, last seen trading around 0.5910, up nearly 0.50% on the day. The NZD/USD pair draws support from broad US Dollar weakness following Moody's downgrade of the US credit rating.
New
2025.05.19 22:37USD/JPY can hold around 145 on a 1-to-3-month view - Rabobank
At the end of last week, Japanese Finance Minister Kato indicated that he would look to talk about FX with US Treasury Secretary Bessent this week. This has spurred investors to move back into long JPY positions.
New
2025.05.19 22:21Fed's Williams flags cautious optimism amid lingering uncertainty
New York Fed President John Williams struck a balanced tone in his latest remarks, highlighting strength in recent US data while acknowledging steady uncertainty around trade.
New
2025.05.19 22:01White House's Hassett: Moody's decision is backward-looking
White House's economic advisor, Kevin Hassett, hinted at the likelihood that further trade deals could be in the offing.
New
2025.05.19 21:55Mexican Peso steadies as Moody's downgrade pressures the US Dollar
The Mexican Peso (MXN) remains firm against the US Dollar (USD) as markets react to renewed uncertainty following Moody's downgrade of the US credit rating. The decision to lower the sovereign rating to AA1 from AAA has prompted a reassessment of the US Dollar's status.
New
2025.05.19 21:28US Dollar faces selling pressure after Moody's US downgrade
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is on the back foot on Monday and trades around 100.40 at the time of writing. The DXY is undergoing some selling pressure with the Greenback losing some support and trust in markets again.
New
2025.05.19 20:42WTI slumps to near $61 as Moody's US downgrade sparks US bond yields
West Texas Intermediate (WTI), futures on NYMEX, tumbles to near $61.00 on Monday. The Oil price faces selling pressure since opening the week due to a significant increase in US Treasury yields.
New
2025.05.19 20:38Fed's Bostic: Inflation not moving to target as fast as anticipated
In an interview with CNBC on Monday, Atlanta Federal Reserve (Fed) President Raphael Bostic said that inflation is not moving to target as fast as anticipated and reiterated that he leans toward only one rate cut this year because it will take time to understand the impact of tariffs, per Reuters.
New
2025.05.19 20:34China: April activity overshadowed by tariff war - Standard Chartered
Activity data points to softening momentum from Q1, but industrial production has held up. Frontloaded exports and macro policy implementation to continue to support growth in Q2. Property market remains the key drag for the domestic economy.
New
2025.05.19 20:16Disclaimer:
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
