USD/CHF Holds Steady Below 0.8000 Ahead of Key US Tariff Deadline

USD/CHF trades cautiously around 0.7950 during Monday’s Asian session as investors await clarity on potential new US tariff rates. The currency pair remains range-bound while markets digest developments in US trade policy and Swiss economic signals.

The US is expected to announce additional tariffs on countries that fail to finalize trade agreements before the 90-day tariff pause expires on July 9. So far, Washington has secured deals with the United Kingdom, Vietnam, and a limited agreement with China. However, uncertainty lingers over future negotiations, which may impact the US Dollar’s direction.

At the time of writing, the US Dollar Index (DXY) has edged higher to near 97.15. Despite the uptick, the Greenback’s broader outlook remains uncertain amid concerns that sweeping reciprocal tariffs could disrupt global trade and fuel inflation in the US. This scenario may boost demand for safe-haven assets like the Swiss Franc (CHF).

The White House has indicated that announcements regarding new trade deals and tariff rates are expected soon, with changes potentially taking effect from August 1. Officials have clarified that this is not a strict deadline but a window for renegotiations.

On the Swiss front, the Swiss National Bank (SNB) is expected to maintain its accommodative stance, with policymakers likely to keep the door open for a return to negative interest rates. June’s inflation data surprised to the upside, with the Consumer Price Index (CPI) rising 0.1% year-over-year, contrary to market expectations for a 0.1% decline.

As the US tariff deadline approaches and inflationary risks mount, traders will continue to monitor USD/CHF for potential volatility.

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