USD\/CHF fell for a fifth day and traded near 0.7720 in Asian hours on Thursday. The Swiss Franc gained from safe-haven buying linked to renewed trade tensions.<\/p>\n
Donald Trump proceeded with new 10% tariffs on trading partners, despite the US Supreme Court blocking part of his proposed duties. In his State of the Union address, he said the US economy is rebounding, defended tariffs as supporting growth, and criticised the Court\u2019s decision.<\/p>\n
The Swiss Franc also drew support from reduced expectations of near-term Swiss National Bank rate cuts. Swiss inflation was unchanged at 0.1% in January, within the SNB\u2019s 0\u20132% target range and in line with its first-quarter outlook.<\/p>\n
The Swiss ZEW Expectations Index rose to 9.8 in February from -4.7 in January. This was its second-highest reading since January last year and aligns with expectations for the SNB policy rate to stay at 0% through 2026.<\/p>\n
Markets are watching Switzerland\u2019s Q4 employment data due later on Thursday and Q4 GDP on Friday. In the US, weekly initial jobless claims are due during the North American session.<\/p>\n
We are seeing the Swiss Franc maintain its strength as ongoing trade negotiations between the US and the European Union create market uncertainty. This situation mirrors the safe-haven demand we observed during the tariff disputes in early 2025. The USD\/CHF pair is currently trading near 0.8850, well above last year’s lows, but the downward pressure is building once again.<\/p>\n
The Swiss National Bank is giving us little reason to expect a change in its firm policy stance, which continues to support the franc. Swiss inflation for January 2026 came in at 1.2%, comfortably within the SNB’s target range and a significant increase from the 0.1% levels seen at the start of last year. With the SNB’s next meeting in March, expectations are solid for them to hold the policy rate at 1.75%.<\/p>\n
On the other side of the pair, recent data from the United States suggests a slowing momentum that may weigh on the dollar. The latest Non-Farm Payroll report showed job growth of 185,000, missing expectations, and January’s inflation cooled slightly to 2.9%. This divergence, with a steady Swiss economy and a softening US outlook, favors a weaker USD\/CHF.<\/p>\n
For the coming weeks, we believe traders should consider strategies that benefit from limited upside in the pair. Buying USD put options with a strike price below the 0.8800 support level could offer a defined-risk way to position for a potential decline. This allows participation in any move lower while capping the maximum potential loss at the premium paid.<\/p>\n
We remember the sharp drop in the pair during the trade tensions of 2025, when it fell below the 0.8000 mark. While current global frictions are different, the market’s tendency to flock to the Swiss Franc as a haven is a consistent theme. Historical volatility during such periods suggests that even small shifts in geopolitical sentiment can cause significant moves in this currency pair.<\/p>\n","protected":false},"excerpt":{"rendered":"
USD\/CHF slid near 0.7720 as safe-haven Franc gained on tariffs, steady inflation, and fewer SNB cuts.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-43673","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=43673"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/43673\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=43673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=43673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=43673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}