The USD/CHF pair trades on a negative note near 0.7965 during the early European session on Tuesday. Persistent trade-related uncertainties and geopolitical risks boost the safe-haven flows, supporting the Swiss Franc (CHF). The US consumer inflation figures will take center stage later on Tuesday.

Bloomberg reported late Monday that US President Donald Trump threatened to impose 100% tariffs on Russia if President Vladimir Putin does not agree to a deal to end his invasion of Ukraine in 50 days. Trump further stated that the levies would come in the form of secondary tariffs, without providing details.

Meanwhile, Trump signaled he was open to talking about tariffs with the European Union, while Japan is reportedly trying to schedule high-level talks with the US this Friday.

The tariff uncertainty and cautious mood ahead of key US inflation data might underpin the CHF against the US Dollar (USD) for the time being.

The US June CPI report could offer some hints about the future path for US interest rates. Analysts expect US inflation to have picked up slightly last month due to the impact of Trump's tariffs.

The headline US CPI is expected to show an increase of 2.7% YoY in June, while the core CPI is projected to show a 3.0% rise during the same report period. If the report shows a hotter-than-estimated inflation outcome, this could help limit the Greenback's losses.

Source: FXStreet