USD/CHF Holds Steady Amid Trade Tensions and Soft Swiss Data

The USD/CHF currency pair struggled for clear direction on Monday as fresh uncertainties surrounding US trade policy weighed on the market. At the time of writing, the pair hovered around 0.7738, showing a slight decline of 0.16% on the day.
Investor sentiment has been shaken after the US administration announced a potential 15% global tariff following a Supreme Court ruling that challenged the previous tariff framework. This development has intensified concerns about the stability of US trade policy and its potential impact on global markets.


Meanwhile, weaker-than-expected Swiss data contributed to a subdued performance in the Swiss Franc. Producer and import prices fell 0.2% month-on-month in January, defying expectations for a slight increase and highlighting persistent low inflationary pressure in Switzerland.


The US Dollar remained relatively steady as markets awaited further signals on trade policy and upcoming economic indicators. Factory orders in December fell 0.7%, signaling a slowdown in US manufacturing activity. Investors are now turning their attention to upcoming US labor and consumer data, including ADP employment change averages and consumer confidence reports, for fresh market direction.


Looking ahead, traders will monitor key events this week including the US President’s State of the Union address, weekly jobless claims, and January’s Producer Price Index. Meanwhile, gold and silver are seeing upward momentum as safe-haven flows respond to ongoing trade uncertainties, while major currency pairs like EUR/USD, GBP/USD, and USD/CAD are experiencing cautious trading under the shadow of global tariff risks.


Overall, markets remain in a holding pattern, with investors balancing geopolitical and economic developments while awaiting clearer guidance on the direction of US monetary and trade policy.