Friday, 18 July 2025
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USD/CHF tumbles to below 0.8050 on tariff uncertainty
Friday, 18 July 2025 12:36 WIB | USD/CHF |SwissFranc

The USD/CHF pair tumbles to around 0.8030 during the early European session on Friday. Persistent trade tensions and Federal Reserve (Fed) policy uncertainty boost the safe-haven demand, supporting the Swiss Franc (CHF). The preliminary reading of the University of Michigan Consumer Sentiment will be the highlight later on Friday. Also, the US Building Permits and Housing Starts will be released.

Concerns over the economic impact of US President Donald Trump's tariff policies, the US fiscal and debt outlook, and the Fed's independence provide some support to the safe-haven assets like the CHF and act as a headwind for the pair. Trump said on Wednesday that he intends to send a letter telling more than 150 trade partners what tariff rate they will face. 

Data release on Thursday indicated strength in the US economy. The US Initial Jobless Claims for the week ending July 12 came in at 221,000, marking a decline of 7,000 from the previous week, according to the Labor Department. Meanwhile, US Retail Sales rose more than expected in June, the US Census Bureau showed. Retail sales rose by 0.6% MoM in June versus -0.9% in May, beating the 0.1% estimate.

Strong US economic data supported the view that the Fed can afford to wait a while longer before cutting interest rates again, which might underpin the US Dollar (USD). Financial markets are now pricing in a September starting date for rate cuts, and Fed officials penciled in two easings later this year, according to Reuters.

Source: FXStreet

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