The USD/CHF pair moved higher in early Asian trading on Monday (4/14), holding around the 0.8170 level after posting losses in the last two consecutive sessions. Market participants are eyeing the release of Swiss Producer and Import Prices for March, due later today.

However, the USD/CHF pair's gains may be restrained as the Swiss Franc (CHF) continues to receive support from safe-haven demand amid escalating trade tensions between the United States and China. The renewed friction has rekindled fears of a global recession, prompting investors to move away from US assets.

Late last week, a series of economic indicators added to the cautious tone in the market. The University of Michigan Consumer Sentiment Index fell to 50.8 in April, while one-year inflation expectations jumped to 6.7%. On the inflation front, the US Producer Price Index (PPI) rose 2.7% year-on-year in March, down from 3.2% in February. Core inflation also slowed to 3.3%. Meanwhile, initial jobless claims rose to 223,000, though continuing claims fell to 1.85 million—providing a mixed view of the labor market.

Adding to the uncertainty, Minneapolis Federal Reserve President Neel Kashkari, in an interview on CBS's Face the Nation on Sunday, described the impact of the trade dispute as one of the most significant blows to confidence in the past decade—second only to the start of the COVID-19 pandemic in March 2020. He stressed that the extent of the economic fallout depends on how quickly trade tensions are resolved. Additionally, New York Fed's Williams and Boston Fed's Collins warned of rising trade-related inflation risks and a possible slowdown in growth. (Newsmaker23)

Source: FXstreet