The USD/CHF pair attempted to recover from recent losses recorded in the previous session, trading around 0.8160 during the Asian trading hours on Thursday (4/17). However, the pair remained close to the 0.8099 mark—its lowest level since September 2011, touched on April 11.

The US dollar (USD) continued to face headwinds as investor uncertainty persisted over the unpredictable nature of US trade and economic policies. In contrast, the Swiss franc (CHF) was supported by safe-haven inflows, further pressuring the USD/CHF pair.

Tensions escalated after US President Donald Trump launched an investigation into potential tariffs on key minerals, widening the trade dispute with China. The investigation covers key sectors such as copper, pharmaceuticals, lumber, and semiconductors, underscoring concerns over limited US domestic production in these industries.

Despite broad-based dollar weakness, the US Dollar Index (DXY) gained slightly, trading near 99.60, supported by strong consumer spending data. US Retail Sales jumped 1.4% in March, beating February's 0.2% increase and market expectations for a 1.3% rise, data showed on Wednesday. Traders now shift their focus to upcoming US data releases, including Building Permits, Housing Starts, Philly Fed Manufacturing Index, and weekly Initial Jobless Claims.

Since the tariff announcement on April 2, the Swiss Franc (CHF) has appreciated more than 7%, emerging as one of the strongest major currencies. Investors have increasingly turned to the Franc as a safe haven asset amid rising global trade tensions and mixed policy signals from the US.

Meanwhile, the sharp appreciation of the CHF has fueled deflationary pressures in Switzerland, prompting speculation that the Swiss National Bank (SNB) may revisit the idea of ​​reintroducing negative interest rates. While the SNB has a history of intervening to curb the franc's strength, it is now acting more cautiously to avoid criticism from Washington. (Newsmaker23)

Source: FXstreet