In Thursday's early European session, the USD/CHF slightly declines to 0.8530.
The Swiss franc is supported by increased safe-haven flows brought on by renewed US-China trade concerns.
Later on Thursday, investors will be waiting for the US March CPI inflation report.
During Thursday's early European session, the USD/CHF pair drops to about 0.8530. Amid the growing trade friction between the two biggest economies in the world, the US and China, the USD depreciates versus the CHF.
In order to facilitate trade talks with trading partners, President Donald Trump announced a 90-day halt on many additional tariffs, reducing them to 10%. But with Trump increasing duties on Chinese goods to 125% on Thursday from 104% just a day earlier, US-China trade relations have descended into a crisis.
Growing trade tensions between the two largest economies in the world may cause them to slow down or perhaps enter a recession. As a result, the economy of other nations may suffer from slower global growth. The CHF benefits from increased demand for safe havens due to economic uncertainty and concerns about a possible global recession.
Later Thursday, we will be watching the US March Consumer Price Index (CPI) inflation report. While the core CPI is predicted to gain 3.0% over the same reported period, the headline CPI is predicted to show an increase of 2.6% YoY in March. The Greenback may rise in the near future if the report reveals a hotter than anticipated result.
The Swiss franc is supported by increased safe-haven flows brought on by renewed US-China trade concerns.
Later on Thursday, investors will be waiting for the US March CPI inflation report.
During Thursday's early European session, the USD/CHF pair drops to about 0.8530. Amid the growing trade friction between the two biggest economies in the world, the US and China, the USD depreciates versus the CHF.
In order to facilitate trade talks with trading partners, President Donald Trump announced a 90-day halt on many additional tariffs, reducing them to 10%. But with Trump increasing duties on Chinese goods to 125% on Thursday from 104% just a day earlier, US-China trade relations have descended into a crisis.
Growing trade tensions between the two largest economies in the world may cause them to slow down or perhaps enter a recession. As a result, the economy of other nations may suffer from slower global growth. The CHF benefits from increased demand for safe havens due to economic uncertainty and concerns about a possible global recession.
Later Thursday, we will be watching the US March Consumer Price Index (CPI) inflation report. While the core CPI is predicted to gain 3.0% over the same reported period, the headline CPI is predicted to show an increase of 2.6% YoY in March. The Greenback may rise in the near future if the report reveals a hotter than anticipated result.
