USD/CHF remains above 0.7900 as US Dollar steadies due to positive trade developments

• USD/CHF maintains position as market sentiment improves due to positive developments on trade deals.
• Trump announced a trade agreement with Japan that imposes a 15% tariff on Japanese exports to the US.
• The Swiss Franc may receive support as the SNB is expected to delay further easing of monetary policy.

USD/CHF holds ground after registering losses in the previous three successive sessions, trading around 0.7920 during the European hours on Wednesday. The pair holds ground as the US Dollar (USD) remains steady amid improving market sentiment, driven by latest trade developments.

United States (US) President Donald Trump announced a trade deal with Japan that includes a 15% tariff on Japanese exports to the US. As part of the agreement, Japan will invest $550 billion in the US and open its markets to key American products. President Trump also said during a meeting with the Philippines' President Bongbong Marcos on Tuesday that they are close to securing a deal.

However, the US Dollar may face challenges due to ongoing concerns over the Fed's independence. Trump took the opportunity to renew his criticism of Federal Reserve (Fed) Chair Jerome Powell, saying, "Powell's going to be out soon anyway; he's got to be out in eight months." Trump argued that the economy remains strong and claimed the Fed is keeping interest rates too high, insisting, "We should be at 1%."

The Swiss National Bank (SNB) is expected to delay further easing of monetary policy following the recent Swiss inflation report for June. The annual Swiss Consumer Price Index (CPI) inched up 0.1% in June, while the monthly CPI increased 0.2%. Traders expect the Swiss central bank to keep the interest rate unchanged at 0% in September, with many market analysts projecting it will likely stay at that level through 2026.