USD/CHF holds below 0.9050 on Trump tariff concerns
The USD/CHF pair traded on a weaker tone around 0.9040 during the early European trading hours on Tuesday.
The US dollar (USD) weakened amid confusion over President-elect Donald Trump’s tariff plans. Investors will be watching to see how aggressive Trump’s policies will be once he takes office.
Later on Tuesday, the preliminary reading of the Eurozone Harmonized Index of Consumer Prices (HICP) for December will be released.
Investor sentiment turned cautious ahead of this week’s Federal Open Market Committee (FOMC) minutes and the US Nonfarm Payrolls (NFP) report on Wednesday and Friday, respectively. This, in turn, dragged the greenback lower against the Swiss Franc (CHF).
Additionally, persistent geopolitical tensions in the Middle East and the ongoing Russia-Ukraine war could boost the CHF as a safe-haven and create a headwind for the pair.
Local news agency Al Jazeera reported that Israel's ongoing bombardment of Gaza was continuing, with six people killed, including a child, in its latest attack on a residential building, bringing the total death toll on Monday to at least 28.
Source: FXStreet