- The USD/CHF is under intense sales pressure on Monday in the middle of a combination of factors.
- Uncertainties related to commerce weigh on the feeling of investors and benefit the CHF of safe refuge.
- The fears of recession in the US and the most aggressive rate cuts of the Fed weigh on the US dollar.
The USD/CHF torque attracts strong sales at the beginning of a new week and collapses at levels just below 0.8000, or the lowest since January 2015 during the first half of the European session. The fall confirms a new break through a negotiation range support of a week of seniority and suggests that the road of lower resistance for cash prices is down.
The severe nature of the international commercial policies of US President Donald Trump continues to weigh on the feeling of investors, which is evident in the underlying bearish tone in the markets of shares and supports the Swiss Franco (CHF) of sure refuge. This, together with an American dollar (USD) in general weakest, exerts downward pressure on the USD/CHF torque for the second consecutive day on Monday.
Trump Rate announcements have affected confidence in the world’s largest economy and have increased the possibility of a recession in the USA. lower since April 2022.
The USD bulls, meanwhile, seem little impressed by the hard line comments of the president of the FED, Jerome Powell, last week, who said that the Central Bank is well positioned to wait more clarity before making any change in the position of the policy. In the absence of any relevant macroeconomic publication of the US, the fundamental background favors the USD bassists and supports the perspectives of greater depreciation of the USD/CHF torque.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
