Created
: 2025.05.12
- 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 jumps to near 0.8350 on US-China trade hopes
Breaking news
USD/CHF jumps to near 0.8350 on US-China trade hopes
New
2025.05.12 14:28
2025.05.12 14:28
2025.05.12 14:28
- USD/CHF gains momentum to around 0.8340 in Monday's early European session, up 0.60% on the day.
- Optimism in US-China trade talks undermines the CHF, a safe-haven currency.
- Persistent geopolitical risks might cap the upside for the pair.
The USD/CHF pair rises to near 0.8340 during the early European session on Monday. The Swiss Franc (CHF) edges lower against the Greenback amid easing concerns of a trade war between the United States (US) and China, the world's two biggest economies.
Both China and the US have said that they've made progress at trade talks in Switzerland, weighing on the safe-haven currency like the CHF and creating a tailwind for the pair. US Treasury Secretary Scott Bessent described the discussions as "productive and constructive," while China's Vice Premier He Lifeng said trade talks with US officials is "an important first step" in stabilising bilateral trade relations.
Furthermore, the hawkish stance from the US Federal Reserve's (Fed) provides some support to the US Dollar (USD). Fed officials signalled that it is not leaning towards cutting interest rates anytime soon. Traders expect the US central bank will deliver wo additional rate reductions towards the end of the year.
On the other hand, persistent geopolitical risks could boost the safe-haven flows and help limit the CHF's losses. India on Saturday accused Pakistan of violating a ceasefire agreement reached earlier the same day between the Directors General of Military Operations (DGMOs) of both nations. India's Foreign Secretary, Vikram Misri, said that Indian forces had been directed to give a firm response to any further ceasefire breaches along the Line of Control (LoC) and the international border.
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
: 2025.05.12
Related articles
Mexican Peso weakens as US-China trade deal lifts US Dollar demand
25 minutes agoGBP: The strongest story in G10? - ING
28 minutes agoUSD/CNH struggles below 50-DMA resistance near 7.28 - Société Générale
33 minutes agoEUR/GBP extends losing streak on sluggish US-EU trade talks
52 minutes agoUS Dollar soars to one-month high on US-China deal to temporarily lower tariffs
55 minutes agoUSD: Waiting on Bessent's update - ING
2025.05.12 20:11
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
Gold drops as US-China tariff reduction weighs on safe-haven demand
Gold prices are under significant pressure in Monday's session, weighed down by improving global risk sentiment and a strengthening US Dollar (USD).
New
2025.05.12 21:16Mexican Peso weakens as US-China trade deal lifts US Dollar demand
The Mexican Peso (MXN) is trading lower against the US Dollar (USD) during Monday's European session, weighed down by rising demand for the Greenback following a breakthrough in US-China trade talks and ongoing Banco de Mexico (Banxico) policy easing.
New
2025.05.12 20:59GBP: The strongest story in G10? - ING
This will be a busy week in the UK data calendar, ING's commodity experts Ewa Manthey and Warren Patterson note.
New
2025.05.12 20:56USD/CNH struggles below 50-DMA resistance near 7.28 - Société Générale
USD/CNH remains under pressure after failing to reclaim the 50-DMA, with downside risks intensifying should the 7.18 support give way, Société Générale's FX analysts note.
New
2025.05.12 20:52EUR/GBP extends losing streak on sluggish US-EU trade talks
The EUR/GBP pair extends its losing streak for the sixth trading day on Monday. The pair slides to near 0.8415 during European trading hours as the Euro (EUR) weakens after the announcement of a 90-day tariff pause by the United States (US) and China earlier in the day.
New
2025.05.12 20:33US Dollar soars to one-month high on US-China deal to temporarily lower tariffs
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, jumps more than 1% on Monday after China and the United States (US) agreed to a 90-day pause in their trade war by slashing tariffs on both sides.
New
2025.05.12 20:30Copper jumps on trade optimism - ING
Copper and other industrial metals rose this morning, with easing trade tensions giving metals markets a boost. At a briefing following the talks, US Treasury Secretary Scott Bessent said neither nation wanted their economies to decouple.
New
2025.05.12 20:16USD: Waiting on Bessent's update - ING
US President Donald Trump described this weekend's US-China meetings in Switzerland as 'very good' and said a 'total reset' is being negotiated. Treasury Secretary Scott Bessent led the negotiations and said 'substantial progress' has been made, and will share details today.
New
2025.05.12 20:11US Nat Gas opens lower on storage surplus - ING
US natural gas prices fell early Thursday as rising inventories outweighed modest weather-driven demand expectations, with the supply surplus building faster than anticipated, ING's commodity experts Ewa Manthey and Warren Patterson note.
New
2025.05.12 19:56USD/JPY rallies above 148.00 as USD soars on US-China trade truce
The USD/JPY pair soars above 148.20 during European trading hours on Monday, the highest level seen in a month. The asset strengthens as the United States (US) and China have agreed to a 90-day truce after a two-day meeting in Switzerland over the weekend.
New
2025.05.12 19:30Disclaimer:
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
