USD/CHF ticks up to near 0.7980 in a sour market mood
The USD/CHF pair edges higher to near 0.7980 during Asian trading hours on Friday. The Swiss Franc pair trades broadly stable in a risk-averse market mood, followed by fears of an increase in United States (US) 10% tariff blanket.
On Thursday, US President Trump said in a telephonic interview with NBC news that he will impose a “15% or 20%” tariff blanked on nations that have failed to secure a trade deal during the 90-day reciprocal tariff pause period. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump said.
This scenario is unfavorble for assets from a lot of countries as Washington has so far closed deal with the United Kingdom (UK) and Vietnam, a limited pact with China and has expressed confidence towards a US-India interim deal.
Meanwhile, dismal market sentiment has improved demand for safe-haven assets, such as Swiss Franc.
Additionally, US President Trump has also sent letter to Canada, specifying a 35% tariff rate, which will be separate from other sectoral levies. He has also threatened to impose tariffs on imports from the Eurozone. However, the 27 nations-led-bloc has stated that it is aiming to reach a deal with Washington before the August 1 deadline.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades higher to near 97.90, the highest level seen in two weeks.
Source: FXStreet
