Select Language

EUR/CHF slides to multi-month low as Euro struggles amid trade woes

Breaking news

EUR/CHF slides to multi-month low as Euro struggles amid trade woes

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.08.01 02:17
 EUR/CHF slides to multi-month low as Euro struggles amid trade woes

update 2025.08.01 02:17

  • EUR/CHF drops to its lowest level since May 5, extends four-day losing streak.
  • The Swiss Franc strengthens on safe-haven demand and strong June Retail Sales data.
  • US President Donald Trump extends the tariff deadline with Mexico by 90 days, but warns new tariffs will hit countries without finalized deals starting August 1.

The Euro (EUR) weakens for the fourth straight day against the Swiss Franc (CHF) on Thursday, pressured by concerns over the recently announced US-EU trade agreement, which investors perceive as one-sided and unfavorable for the European Union (EU).

At the time of writing, the EUR/CHF cross is hovering near 0.9280, its lowest level since May 5. The pair is down nearly 0.60% so far this week, as the Swiss Franc benefits from safe-haven demand amid rising trade tensions and ahead of the looming US tariff deadline, set to expire on Friday, August 1.

US President Donald Trump announced on Thursday a 90-day extension to the tariff deadline with Mexico. The agreement, reached after a phone call with Mexican President Claudia Sheinbaum, allows both sides more time to finalize a comprehensive trade deal. Existing tariffs such as the 25% levy on autos and 50% on key metals will remain in place. Still, markets remain nervous, as President Trump reiterates his warning that new tariffs will be imposed on countries without finalized trade deals starting August 1. A White House official confirmed that tariff rates for most major trading partners have already been finalized. The lack of clarity over which countries will be affected, combined with the looming deadline, is fueling investor anxiety and adding to broader trade-related uncertainty.

Fresh data released by the Swiss Federal Statistical Office on Thursday further boosted demand for the safe-haven Franc. Real Retail Sales rose 3.8% YoY in June, sharply beating expectations of 0.2% and accelerating from May's upwardly revised 0.3% (previously 0%). On a monthly basis, Retail Sales climbed 1.5% in June, rebounding from a revised 0.4% drop in May and marking the first positive reading in five months.

Meanwhile, recent Eurozone data has done little to inspire confidence in the shared currency. The preliminary estimate for Q2 2025 Gross Domestic Product (GDP) showed the Euro area economy expanded by just 0.1% QoQ, indicating a sharp slowdown from Q1 and underscoring weak underlying momentum across core economies. Inflation figures were mixed but generally subdued, with Germany's Consumer Price Index (CPI) easing to 1.8% YoY in July, below the 1.9% forecast, while Italy's CPI slipped to 1.7% YoY amid seasonal pricing effects.

Looking ahead, market attention will turn to the Eurozone's preliminary inflation data for July, set for release on Friday. The release will be critical in shaping expectations for the European Central Bank's (ECB) next move, especially amid persistent uncertainty over price pressures and weak growth across the bloc.

Economic Indicator

Core Harmonized Index of Consumer Prices (MoM)

The Core Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The MoM figure compares the prices of goods in the reference month to the previous month. Core HICP excludes volatile components like food, energy, alcohol, and tobacco. The Core HICP is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

Read more.

Next release: Fri Aug 01, 2025 09:00 (Prel)

Frequency: Monthly

Consensus: -

Previous: 0.4%

Source: Eurostat


Date

Created

 : 2025.08.01

Update

Last updated

 : 2025.08.01

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

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

Swiss Franc strengthens as USD stumbles on NFP shock

The Swiss Franc (CHF) strengthens against the US Dollar (USD) on Friday as the Greenback comes under heavy pressure following the release of the July Nonfarm Payrolls (NFP) report.
New
update2025.08.01 23:17

US ISM Manufacturing PMI fell to 48.0 in July

In July, the US manufacturing sector's economy lost some momentum. The ISM Manufacturing PMI dropped from 49.0 in June to 48.0, which was also lower than analysts' predictions of 49.5.
New
update2025.08.01 23:04

US Dollar Index slides to two-day lows on gloomy NFP

The Greenback, when tracked by the US Dollar Index (DXY), rapidly left behind the area of recent lows and slipped back to the vicinity of the 99.00 neighbourhood at the end of the week.
New
update2025.08.01 22:12

Euro rebounds sharply as US Nonfarm payrolls disappoint, rate cut bets surge

The Euro (EUR) reverses sharply against the US Dollar (USD) on Friday after the July Nonfarm Payrolls (NFP) report surprised to the downside, catching markets off guard.
New
update2025.08.01 22:10

Canadian Dollar rebounds as dismal NFP data weighs on USD

The Canadian Dollar (CAD) erased a portion of its weekly losses against the US Dollar (USD) on Friday following the disappointing July employment report from the US. At the time of press, the USD/CAD pair was trading at 1.3795, losing about 0.5% on a daily basis.
New
update2025.08.01 22:06

AUD/USD retargets 0.6500, Dollar melts post-NFP

The now widespread recovery in the risk-linked galaxy lends extra oxygen to the Australian Dollar (AUD), sending AUD/USD back to the proximity of the key resistance area around 0.6500 on Friday.
New
update2025.08.01 21:59

USD/JPY slumps below 149.00 after weak US employment data

USD/JPY turned south in the early American session on Friday as markets reacted to the July employment data from the US. At the time of press, the pair was trading at 148.80 losing 1.3% on a daily basis.
New
update2025.08.01 21:56

GBP/USD reclaims 1.3200 and beyond on poor US Payrolls

The Sterling now gathers some fresh traction and lifts GBP/USD back to the positive territory beyond 1.3200 the figure following the abrup loss of momentum in the Greenback in the wake of the publication of the US jobs report.
New
update2025.08.01 21:47

US Copper tariff limited to semi-finished products - Commerzbank

The long-awaited clarification of US Copper tariffs has arrived. Once again, it turned out not to be as bad as feared, Commerzbank's commodity analyst Barbara Lambrecht notes.
New
update2025.08.01 21:25

Silver Price Forecast: XAG/USD breaks below ascending channel support, NFP in focus

Silver (XAG/USD) continues to struggle under the weight of a stronger US Dollar, extending its decline from the 14-year high of $39.53 reached on July 23.
New
update2025.08.01 21:22

Disclaimer:arw

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.

  • Facebook
  • Twitter
  • LINE

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

I agree
share
Share
Cancel