- USD/CHF trades marginally higher, but is broadly sideways below 0.8000.
- US President Trump mulls to consider increasing tariff blanked for nations that failed to close deal during the 90-day tariff pause period.
- Dismal market sentiment has improved the safe-haven demand of the Swiss Franc.
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.
