USD/CHF started Tuesday's Asian session (08/4) slightly lower, after a wild trading day on Monday, which saw it swing in the range of 0.8450–0.8673, and ended almost unchanged. At the time of writing, the major was trading at 0.8588, down 0.02%.

The currency pair was trading near 0.8588 amid mixed sentiment, with investors eyeing US CPI as the next catalyst for direction

The market mood was mixed, with one of the three US indices posting a positive day, while the Volatility Index (VIX) ended at 46.98, its highest level since March 2020. Tariffs continued to be the main driver, stoking fears among investors as a global recession looms, following China's retaliatory 34% tariffs on US imports.

On Monday, Trump threatened to impose 50% tariffs on Chinese goods if they fail to lift levies on US goods by April 8.

Rumors of a 90-day tariff suspension, except for China, voiced by White House economic adviser Hassett, were later denied by Washington, which called the comments "fake news," boosting demand for the greenback.

The US Dollar Index (DXY), which tracks the US dollar against a basket of six currencies that includes the CHF, rose 0.56% to 103.47.

The US economic calendar remains empty, although traders are eyeing the release of March Consumer Price Index (CPI) data. If the headline and core figures surprise investors and rise above estimates and the previous month's readings, it could hurt currency market bets that the Federal Reserve will cut interest rates by almost 100 basis points, by the end of the year, according to Prime Market Terminal data. (Newsamker23)

Source: FXstreet