The USD/CHF pair experienced a decline, approaching the 0.8100 level before exhibiting a rebound. Demand for safe-haven assets is providing support to the Swiss franc. Market focus is now directed towards the forthcoming release of US Producer Price Index data. Recent tariff increases imposed by China are strengthening the CHF and negatively impacting the USD. These tariffs, a response to US tariff hikes on Chinese goods, have escalated trade tensions and pose a potential threat to global supply chains. Consequently, investors are seeking refuge in safe-haven currencies, contributing to the CHF’s appreciation and driving the USD/CHF pair towards the 0.8100 area, a level not seen since September 2011. Concurrently, growing concerns regarding stagflation in the US are weakening the USD, leading to a correction in the US Dollar Index (DXY). Furthermore, the USD’s bearish trend is being reinforced by investors anticipating increased interest rate cuts by the Federal Reserve (Fed), particularly following the release of US CPI data for March, which fell below expectations.
