The USD/CHF pair traded around 0.8900 during the North American session on Tuesday (4/29), benefiting from a broader US Dollar (USD) strength. US Commerce Secretary Howard Lutnick revealed a White House plan aimed at reducing tariffs on US automakers, supporting a mild recovery in global risk appetite. Meanwhile, the US Dollar Index (DXY) moved higher towards 99.30, supported by expectations that weaker labor market data and weak consumer confidence could steer the Federal Reserve (Fed) towards a more cautious policy stance. However, uncertainty remains around the US-China trade negotiations, preventing a stronger USD rally.

Data from the US Bureau of Labor Statistics (BLS) showed that the Job Openings and Labor Turnover Survey (JOLTS) for March fell to 7.192 million, missing expectations of 7.5 million and marking the lowest reading since September. In parallel, the Conference Board's Consumer Confidence Index fell sharply to 86.0 in April, indicating rising economic pessimism. Despite weaker employment and sentiment data, the USD gained modestly as markets anticipated possible trade tariff relief and awaited key economic figures later in the week, including the release of GDP and ISM PMI.

Elsewhere, geopolitical headlines weighed on risk sentiment. US Treasury Secretary Scott Bessent stressed that China should take the initiative to ease trade tensions, while Beijing's move to remove 125% tariffs on US ethane imports was seen as a marginal positive. Markets remained cautious, especially as conflicting messages from Washington and Beijing added to uncertainty. (Newsmaker23)

Source: FXstreet