USD/CHF edges higher to near 0.7930 amid easing US-China trade tensions
The USD/CHF pair ticks up to near 0.7930 during the Asian trading session on Tuesday. The Swiss Franc pair edges higher as the US Dollar (USD) extends its two-day recovery move amid easing trade frictions between the United States (US) and China.
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.12% higher to near 98.70.
Trade tensions between the US and China receded after comments from President Donald Trump on Monday signaled confidence that Washington will reach a deal with Beijing. Trump and Chinese leader Xi Jinping are scheduled to meet at the Asia-Pacific Economic Cooperation meeting in South Korea later this month. This will be the first meeting between both leaders since Trump’s return to the White House.
On the domestic front, hopes of US government reopening after three weeks of shutdown have also supported the US Dollar. On Monday, White House economic adviser Kevin Hassett stated in an interview with CNBC that the shutdown is” likely to end sometime this week”.
This week, investors will also focus on the delayed US Consumer Price Index (CPI) data for September, which will be released on Friday. The impact of the inflation data will be significant on the US Dollar as major federal economic data have not released since the government shutdown.
Meanwhile, the Swiss Franc (CHF) trades broadly calm despite increasing concerns over the Swiss economic outlook. Swiss State Secretariat for Economic Affairs (SECO) confirmed in its October outlook that the economy will expand by only 1.3% this year, a pace below the historical average. The institution also slashed the Gross Domestic Product (GDP) growth forecast for 2026 to 0.9% from 1.2% previously anticipated, highlighting a significant loss of momentum in the second half of 2025.
Source: Fxstreet
