Created
: 2025.07.25
- 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 edges higher to above 0.7950 on modest US dollar strength
World FX news
Breaking news
USD/CHF edges higher to above 0.7950 on modest US dollar strength
New
2025.07.25 14:06
2025.07.25 14:06
2025.07.25 14:06
- USD/CHF strengthens to near 0.7965 in Friday's early European session.
- Trump is reported to be shifting to dealmaking mode on China.
- Concerns over the Fed's independence might drag the US Dollar lower.
The USD/CHF pair trades on a positive note around 0.7965 during the early European session on Friday. Optimism surrounding US trade deals provides some support to the Greenback. However, the upside for the pair might be limited as markets might turn cautious ahead of crucial events next week.
The Wall Street Journal (WSJ) reported on Friday that US President Donald Trump is now pursuing dealmaking with China. Trump might shift from a strategy of pressure to negotiation, with the goal of securing an economic agreement that will increase US access to Chinese markets, particularly in business and technology. These positive developments ease fears of trade tensions between the world's two largest economies and undermine the safe-haven currency, like the Swiss Franc (CHF).
Late Thursday, Trump added to the pressure on Fed Chair Jerome Powell with a visit to the Fed's Washington offices. Trump and Powell discussed the costs of ongoing renovations at the Fed's headquarters. Any surprise move that escalates tensions between the administration and the US central bank could drag the US Dollar (USD) lower against the CHF in the near term.
The US Durable Goods Orders for June will be released later on Friday. All eyes will be on the Federal Open Market Committee (FOMC) policy meeting next week. The FOMC is anticipated to leave the rate unchanged at its July meeting as policymakers prefer to wait for clarity on the expected impact of tariffs on inflation. Financial markets have priced in nearly a 60% chance of a 25 basis points (bps) September rate cut, according to the CME FedWatch tool.
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
: 2025.07.25
Related articles
EUR/USD ends week nearly 1% higher as trade optimism offsets weak US data
2025.07.26 07:08US-Japan trade deal may not be as clear as Trump proclaims it to be
2025.07.26 05:07NZD/USD pares gains as Greenback firms, optimism grows over US-China trade talks
2025.07.26 03:21Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
2025.07.26 01:11
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
EUR/USD ends week nearly 1% higher as trade optimism offsets weak US data
The EUR/USD finished the week up by nearly 1% on Friday, yet ended the daily session flat, following economic data from the United States (US) that was worse than expected, but offset by positive trade news. With the Greenback cutting losses, the pair trades at 1.1741 virtually unchanged.
New
2025.07.26 07:08US-Japan trade deal may not be as clear as Trump proclaims it to be
United States (US) President Donald Trump proudly declared an impending trade deal between the US and Japan earlier this week, touting an arrangement that would see US importers pay a much milder 15% tariff fee on all goods imported from Japan compared to the threatened 25% level that President Trum
New
2025.07.26 05:07Gold set for weekly loss as strong US data, trade optimism hits safe-haven demand
Gold price (XAU/USD) is poised to end the week on a lower note as economic data from the United States (US) and progress in trade deals with the latter weighed on safe-haven demand, driving the yellow metal lower.
New
2025.07.26 04:09NZD/USD pares gains as Greenback firms, optimism grows over US-China trade talks
The New Zealand Dollar (NZD) extends losses for a second consecutive session on Friday but remains poised for a weekly gain, supported by improved risk sentiment amid growing optimism over potential US trade deals.
New
2025.07.26 03:21Dow Jones Industrial Average recovers on Friday after better-than-expected Durable Goods Orders
The Dow Jones Industrial Average (DJIA) rebounded on Friday, recovering its footing after a mild downturn during the previous session.
New
2025.07.26 03:20WTI Crude Oil falls below $65 amid rising output and cloudy demand signals
West Texas Intermediate (WTI) is under pressure on Friday as markets respond to a growing global supply outlook and remain cautious on demand prospects.
New
2025.07.26 03:13Canadian Dollar extends declines against US Dollar on renewed Trump tariff threats
The Canadian Dollar (CAD) took another hit on Friday, extending into a two-day backslide against the US Dollar (USD) as Loonie traders hunker down for a fresh bout of tariff-fueled tirades from United States (US) President Donald Trump.
2025.07.26 02:06EUR/USD supported by Euro resilience amid US recession fears and Fed rate cut bets - Rabobank
Since US President Trump's reciprocal tariffs address on April 2, the EUR is the second best performing G10 currency after the safe-haven CHF, Rabobank's FX analyst Jane Foley reports.
2025.07.26 01:39AUD/USD slips from YTD high as stronger US Dollar and wedge rejection weigh on outlook
The Australian Dollar (AUD) is losing ground against the US Dollar (USD) on Friday, pressured by rising US Treasury yields that continue to support demand for the Greenback.
2025.07.26 01:11USD/CHF steadies below 0.8000 amid resilient US data and easing trade fears
The Swiss Franc (CHF) loses ground for a third consecutive day against the US Dollar (USD) on Friday, pressured by improving risk sentiment and a rebound in the US Dollar.
2025.07.26 01:07Disclaimer:
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
