- USD/CHF faces selling pressure as the US Dollar underperforms its peers.
- The US Dollar declines even as Washington closes trade deals with Japan and the Philippines.
- Investors await SNB Schlegel’s speech and key US data.
The USD/CHF seems vulnerable near an over two-week low around 0.7940 during the late Asian trading session on Wednesday. The Swiss Franc pair faces selling pressure as the US Dollar (USD) underperforms despite Washington announcing that it has signed trade deals with Japan, and Philippines.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, holds onto losses near the two-week low around 97.45.
US President Donald Trump confirmed through a post on Truth.Social that trades deals with Japan and the Philippines have signed. Trump wrote that Washington will charge 15% and 19% tariffs on imports from Japan and the Philippines.
Theoretically, the scenario should have been favorable for the US Dollar, given that Japan is one of key trading partners of the US.
On the domestic front, investors await preliminary US S&P Global Purchasing Managers’ Index (PMI) data for July and the Durable Goods Orders data for June, which are scheduled to be released on Thursday and Friday, respectively.
In the Swiss region, investors will closely monitor speech from Swiss National Bank (SNB) Chairman Martin Schlegel, which is scheduled for Thursday. Schlegel will likely provide cues about the monetary policy outlook for the remainder of the year.
The SNB reduced its interest rates to zero in the monetary policy meeting in June to counter downside inflation risks.
