USD/CHF softens to near 0.6400 amid tariff uncertainty
The USD/CHF pair posts modest losses around 0.6410 during the early European session on Wednesday. The uncertainty surrounding trade policy continues to boost the safe-haven flows, supporting the Swiss Franc (CHF). The Swiss KOF Leading Indicator for April is due later on Wednesday.
China exempted some US imports from its 125% tariffs last week, although China quickly knocked down US President Donald Trump's assertion that trade talks between the two countries were underway. On Monday, US Treasury Secretary Scott Bessent said that key trade partners have made "very good" offers to avoid US tariffs. Markets remain cautious, particularly as conflicting messages from Washington and Beijing add to uncertainty. This, in turn, provides some support to the safe-haven currency like the CHF and creates a headwind for USD/CHF.
Traders await the US economic data later on Wednesday, including the US ADP Employment Change, Personal Consumption Expenditures Price Index (PCE), and the preliminary reading of Q1 Gross Domestic Product (GDP). All eyes will be on the US April Nonfarm Payrolls (NFP) on Friday. The NFP is expected to show 130K job additions in April, while the Unemployment Rate is estimated to remain at 4.2%. In case of a stronger-than-expected outcome, this could lift the Greenback against the CHF in the near term.
Source: Fxstreet
