USD/CHF: Modest Rebound After Trade Deal Boosts Market Mood

The USD/CHF pair managed to recover from earlier losses on Friday, bouncing off its weakest level in nearly a month as news of a new US-Switzerland tariff agreement lifted sentiment. The pair climbed back toward the 0.7930 area, ending a seven-day losing streak and benefiting from a slightly firmer US Dollar.

The market welcomed confirmation that the United States will reduce tariffs on Swiss exports from around 39% to 15%, a move seen as improving trade conditions and injecting fresh optimism into currency markets. Expectations of significant Swiss investment flowing into the US economy added another layer of support.

However, the pair’s recovery remained limited as uncertainty around US economic data overshadowed the positive trade headlines. The US government confirmed that October inflation figures may not be released due to incomplete data collection, while the latest jobs report has still not been processed. This data blackout has left traders cautious and reluctant to price in a clearer direction for the Dollar.

At the same time, recent comments from Federal Reserve officials continued to strike a cautious tone, highlighting ongoing concerns about inflation. As a result, market expectations for a December rate cut have dropped sharply, adding another layer of hesitancy to Dollar buying.

Overall, USD/CHF is stabilizing after a difficult week, supported by improved trade relations but still constrained by economic uncertainty and shifting interest-rate expectations. The pair’s next move will depend largely on the timing and clarity of upcoming US economic releases.