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USD/CHF recovered some lost ground during the European morning on Friday, trading around 0.8985 as the US Dollar (USD) staged a modest rebound. Investors were bracing for the release of the S&P Global PMI report from the United States later in the day. In addition, Mary Daly and Philip Jefferson of the Federal Reserve (Fed) will also speak later on the same day.
Fed officials agreed in January that they needed to see inflation ease further before lowering interest rates further. Policymakers were concerned about the impact Trump’s tariffs would have on achieving that goal, according to minutes of the meeting released Wednesday.
Federal Reserve Chairman Jerome Powell said the bank is in no rush to cut interest rates further given uncertainty about the future direction of the economy. Analysts predict that the U.S. central bank may cut interest rates only once in 2025, and there is a high probability that it will not cut interest rates at all. This in turn could boost the dollar against the Swiss franc (CHF).
Trump said on Wednesday he would announce new tariffs within the next month, adding lumber and forest products to previously announced tariffs on imported cars, semiconductors and pharmaceuticals. Additionally, hopes for a ceasefire between Russia and Ukraine appear to have faded as Ukrainian drone attacks on Russian oil pumping stations intensify. Concerns about U.S. President Donald Trump’s trade tariffs and ongoing geopolitical tensions should support safe-haven currencies such as the Swiss franc.
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