The USD/CHF pair traded in the positive territory near 0.9065 during the early European session. The US dollar (USD) moved higher as traders assessed the impact of US President Donald Trump's tariff plans earlier in the week. On Wednesday, the US Federal Reserve's (Fed) interest rate decision will be in focus.

US President Donald Trump on Sunday imposed broad retaliatory measures against Colombia, including tariffs and sanctions, after the South American country refused to allow two military planes carrying deported migrants to land. However, the White House said on Monday that Colombia has agreed to accept the military planes carrying deported migrants.

 The prospect of high tariffs on goods from countries including China, Canada, Mexico and the Eurozone has stoked concerns about inflation, boosting US Treasury yields and the greenback. On the Swiss side, a very dovish monetary policy stance from the Swiss National Bank (SNB) could weigh on the Swiss Franc (CHF) and act as a tailwind for USD/CHF. SNB Chairman Martin Schlegel told the World Economic Forum (WEF) in Davos that the SNB "doesn't like negative interest rates" but if we have to do it, "we will do it." Meanwhile, signs of rising geopolitical risks in the Middle East and the Russia-Ukraine conflict could boost safe-haven inflows, which would benefit the CHF. (AL)

Source: FXstreet