Created
: 2025.05.05
- 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 depressed amid broadly weaker USD; manages to hold above 0.8200 mark
World FX news
Breaking news
USD/CHF remains depressed amid broadly weaker USD; manages to hold above 0.8200 mark
New
2025.05.05 14:53
2025.05.05 14:53
2025.05.05 14:53
- USD/CHF attracts sellers for the second straight day and is pressured by a combination of factors.
- Aggressive Fed rate cut bets weigh on the USD while reviving safe-haven demand benefits the CHF.
- Bears, however, seem reluctant to place fresh bets ahead of the crucial two-day FOMC meeting.
The USD/CHF pair struggles to capitalize on Friday's upbeat US jobs data-inspired bounce from the 0.8200 neighborhood and attracts fresh sellers at the start of a new week. Spot prices, however, remain confined in a familiar range held over the past two weeks or so and currently trade around the 0.8235-0.8230 region, down nearly 0.50% for the day.
The better-than-expected release of the closely-watched US Nonfarm Payrolls (NFP) report forced investors to push back their expectations for a 25 basis points (bps) rate cut by the Federal Reserve (Fed) to July from June. The US Dollar (USD), however, remains depressed below a multi-week high touched last Thursday amid heightened economic uncertainty on the back of US President Donald Trump's tariffs. Apart from this, reviving safe-haven demand benefits the Swiss Franc (CHF) and contributes to the offered tone surrounding the USD/CHF pair.
Despite hopes for the potential de-escalation of tensions between the US and China, Trump's rapidly shifting stance on trade policies keeps investors on the edge. Apart from this, the protracted Russia-Ukraine war and a fresh escalation of conflicts in the Middle East keep geopolitical risks in play. This, in turn, tempers investors' appetite for riskier assets, which is evident from a weaker tone around the equity markets and supports the CHF. Bears, however, seem reluctant to place fresh bets around the USD/CHF pair ahead of this week's key central bank event risk.
The Fed is scheduled to announce its policy decision at the end of a two-day meeting on Wednesday. Investors will look for cues about the central bank's further rate-cut path, which will play a key role in influencing the USD price dynamics and provide a fresh directional impetus to the USD/CHF pair. In the meantime, Monday's release of the US ISM Services PMI will be looked upon to grab short-term opportunities later during the early North American session.
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
: 2025.05.05
Related articles
USD/CHF Price Forecast: Slides below 0.82, reachis mul-week low as USD appreciates
23 minutes agoTrump administration sets Wednesday deadline for trade offers from other countries
2025.06.03 04:34BoE's Mann: Impact of QT is a more salient issue now BoE is cutting rates.
2025.06.03 04:26GBP/USD steadies near 1.3540 as the US Dollar struggles under global pressure
2025.06.03 04:24Fed's Goolsbee: Rates can come down over 12-18 months
2025.06.03 04:21Forex Today: Focus remains on US jobs data and EMU flash CPI
2025.06.03 04:09
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
USD/CHF Price Forecast: Slides below 0.82, reachis mul-week low as USD appreciates
USD/CHF extended its losses during Monday's North American session, down 0.60% as the Greenback weakened across the board.
New
2025.06.03 05:22Trump administration sets Wednesday deadline for trade offers from other countries
The Trump administration is reportedly working on delivering a final trade offer deadline set for this Wednesday.
New
2025.06.03 04:34BoE's Mann: Impact of QT is a more salient issue now BoE is cutting rates.
Bank of England's MPC (hawk) member Catherine Mann said that the bank should closely monitor the effects of its quantitative tightening (QT) programme on monetary and financial conditions, especially in light of the recent interest rate cuts.
New
2025.06.03 04:26GBP/USD steadies near 1.3540 as the US Dollar struggles under global pressure
The British Pound (GBP) bounces back at the start of the week, advancing against the US Dollar (USD) on Monday and trimming last week's losses. The GBP/USD pair is rebounding modestly as investors pare back US Dollar holdings amid lingering uncertainty over the global economic outlook.
New
2025.06.03 04:24Fed's Goolsbee: Rates can come down over 12-18 months
On Monday, Austan Goolsbee, President of the Chicago Federal Reserve Bank, expressed his belief that the Fed would eventually lower short-term rates once the uncertainty surrounding tariff policies is resolved.
New
2025.06.03 04:21Forex Today: Focus remains on US jobs data and EMU flash CPI
The US Dollar (USD) faced increasing selling pressure in quite a negative start to the new trading week, slipping back to multi-week troughs amid the resurgence of trade concerns and jitters over the health of the US economy.
New
2025.06.03 04:09Silver Price Forecast: XAG/USD surges over 5%, hits yearly high
Silver prices soar, gaining over 5% on Monday, as investors who had become risk-averse earlier pushed the grey metal higher. However, as market sentiment improved, buyers continued to drive XAG/USD higher, trading at $34.65 near year-to-date (YTD) highs.
New
2025.06.03 04:01EUR/USD reaches six-week high near 1.1450 as US Dollar slides on trade jitters
EUR/USD edges up during the North American session to hit a six-week high of 1.1449, poised to stay above 1.1400 as the US Dollar drops to levels last seen in April as the "Sell America" trade continues.
New
2025.06.03 03:40USD/JPY weakens as investors seek refuge in the Yen amid weak US PMI data
The Japanese Yen (JPY) is gaining strength against the US Dollar (USD) on Monday, as investors seek refuge in the Yen's safe-haven appeal.
New
2025.06.03 03:34Dow Jones Industrial Average struggles under the weight of fresh trade concerns
The Dow Jones Industrial Average (DJIA) remains trapped in near-term congestion as trade woes weigh on investors and the new trading month kicks off on a cautious note.
New
2025.06.03 03:09Disclaimer:
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
