14 Mar 2025

The USD/CHF currency pair is currently on an upward trajectory, having reached approximately 0.8840 during the Asian trading session on Friday, which represents a daily increase of 0.26%. This upward movement is primarily driven by a renewed demand for the US Dollar. However, the growing interest in safe-haven assets may bolster the Swiss Franc, potentially curtailing the upward momentum of the pair.

On the previous day, the Labor Department reported that US producer prices remained unexpectedly stable on a month-to-month basis in February. Despite this stability, it is expected that tariffs will not effectively suppress prices in the short term. "Looking ahead, the inflation outlook has become increasingly uncertain as various economic factors begin to take effect. A significant consideration is the impact of tariffs, which have started to influence consumer prices," remarked Sung Won Sohn, chief economist at SS Economics. This scenario provides some support for the US Dollar against the Swiss Franc.

On the other hand, the tariffs implemented by the Trump administration could inflict long-term damage on the US economy and potentially trigger a recession. Trump has consistently expressed his intention to impose tariffs on Europe, China, and other trading partners to rejuvenate domestic manufacturing and fulfill his campaign promise to "Make America Great Again." The prevailing global uncertainty, along with escalating geopolitical tensions in the Middle East, may increase the demand for safe-haven currencies, thereby benefiting the Swiss Franc.