The Swiss Franc (CHF) steadies against the US Dollar (USD) on Thursday, snapping a six-day losing streak as investors rotate back into the Franc amid renewed safe-haven demand. The cautious tone in markets comes ahead of the looming US tariff deadline on Friday, August 1, with US President Donald Trump reiterating that new tariffs will be imposed on countries without finalized trade agreements. The shift in sentiment reflects heightened uncertainty surrounding global trade policy, prompting a pause in recent USD strength against the Swiss Franc.

The USD/CHF pair hit its highest level in over five weeks on Wednesday, climbing to 0.8151 after the Federal Reserve (Fed) left interest rates unchanged, as expected. However, the pair has since edged lower and is currently trading around 0.8123 during the American session, down nearly 0.30% on the day. The mild pullback comes despite stronger-than-expected US economic data, indicating a round of profit-taking and a shift in sentiment ahead of the tariff deadline.

The latest data from the US Bureau of Economic Analysis showed that inflation remains persistent, with the core Personal Consumption Expenditures (PCE) Price Index ,the Fed's preferred inflation gauge rising 0.3% MoM in June, in line with expectations and faster than May's 0.2% increase. On an annual basis, core PCE held steady at 2.8%, slightly above the 2.7% forecast. The headline PCE Price Index also climbed 0.3% MoM and 2.6% YoY, both beating expectations, pointing to sticky underlying price pressures.

Source: Fxstreet