The USD/CHF currency pair dipped toward the 0.8550 mark during early European trading hours on Tuesday, as mounting fears of a global recession weighed on the U.S. Dollar (USD) and boosted demand for the Swiss Franc (CHF).
The greenback came under pressure after U.S. President Donald Trump escalated trade tensions by proposing sweeping tariffs on imports. Trump announced plans for a minimum 10% tariff on all U.S. imports, with some levies potentially rising to 50%, arguing the measures would help restore America’s industrial base after decades of trade liberalization.
The move has triggered fresh volatility in global markets, intensifying concerns over an impending economic slowdown. As a result, investors are turning to the Swiss Franc, traditionally seen as a safe-haven currency during times of uncertainty.
Amid this backdrop, speculation is growing that the Swiss National Bank (SNB) may respond with additional monetary easing. Analysts increasingly expect the SNB to deliver another 25 basis point rate cut, according to data from LSEG, in an effort to support the economy and mitigate the impact of global financial stress.
Meanwhile, domestic data released by the State Secretariat for Economic Affairs (SECO) showed that Switzerland’s seasonally adjusted unemployment rate ticked up slightly to 2.8% in March, from 2.7% in the previous month—still reflecting a robust labor market by historical standards.
With both monetary policy and safe-haven flows in focus, the USD/CHF pair remains vulnerable to further downside if global trade tensions deepen or if the SNB signals a more dovish stance in the weeks ahead.
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