- The US Dollar recovery halts below 0.8000 amid a cautious market mood.
- Uncertainty about the global trade outlook is underpinning the safe-haven Swissy,
- The USD/CHF broader bearish trend remains in play with the US Dollar depreciating about 6% from mid May.
The US Dollar recovery from long-term lows, at 0.7870, has stalled on Tuesday right below the 0.8000 psychological level. The pair is trading with moderate losses on Tuesday, moving around the 0.7980 level, with the safe-haven Swiss Franc underpinned by the growing uncertainty about global trade.
Trump sent a first batch of tariff letters on Monday, reestablishing the levels announced on April 2 to Japan and South Korea, among other Asian partners. The US president also delayed the deadline to August one and maintained the door open to adjustments if a trade deal is reached in the meantime.
The “firm, but not 100% firm tariff policy”, as stated by the US President, highlights the US administration’s erratic stance on international trade, and leaves investors wondering which tariffs and from which time will be implemented, with risk appetite subdued.
Against this backdrop and in the absence of key macroeconomic figures to divert the market focus, safe-haven assets, such as the CHF, are holding the upper hand. The USD/CHF is trading with moderate losses within Monday’s range, with the bearish trend intact, as the pair remains nearly 6% below mid-May highs and about 12% down on the year so far.
