USD/CHF ticks down to near 0.8045 on hopes of US-Swiss trade deal
The USD/CHF pair edges lower to near 0.8045 during the late Asian trading session on Tuesday. The Swiss Franc pair faces slight selling pressure as the Swiss Franc (CHF) outperforms its peers on hopes that the United States (US) and Switzerland will reach a trade deal soon.
  • USD/CHF edges down to near 0.8045 as the Swiss Franc outperforms across the board.
  • The US and Switzerland are expected to close a trade deal in two weeks.
  • The US Senate advances federal funding to the House of Representatives.

The USD/CHF pair edges lower to near 0.8045 during the late Asian trading session on Tuesday. The Swiss Franc pair faces slight selling pressure as the Swiss Franc (CHF) outperforms its peers on hopes that the United States (US) and Switzerland will reach a trade deal soon.

Swiss Franc Price Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.01% 0.09% 0.11% 0.13% 0.27% 0.18% -0.08%
EUR 0.00% 0.09% 0.09% 0.14% 0.28% 0.20% -0.07%
GBP -0.09% -0.09% 0.00% 0.05% 0.16% 0.10% -0.16%
JPY -0.11% -0.09% 0.00% 0.03% 0.17% 0.07% -0.18%
CAD -0.13% -0.14% -0.05% -0.03% 0.14% 0.04% -0.21%
AUD -0.27% -0.28% -0.16% -0.17% -0.14% -0.09% -0.38%
NZD -0.18% -0.20% -0.10% -0.07% -0.04% 0.09% -0.26%
CHF 0.08% 0.07% 0.16% 0.18% 0.21% 0.38% 0.26%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

A Bloomberg report showed that the US and the Swiss economy could announce a trade deal in two weeks, in which Washington is expected to reduce tariffs on imports from Switzerland to 15%. Currently, the US is charging 39% tariffs on imports from the Swiss economy. Lower import duty on Swiss products would improve their competitiveness in the global market.

In the meantime, the US Dollar (USD) trades calmly as the US Senate has passed the government funding bill to the Republican-controlled House of Representatives, where it is expected to be approved by Wednesday, according to Speaker Mike Johnson, Reuters reported.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat around 99.60.

Meanwhile, investors await fresh cues on whether the Federal Reserve (Fed) will cut interest rates again this year. According to the CME FedWatch tool, the probability of the Fed cutting interest rates by 25 basis points (bps) to 3.50%-3.75% in the December meeting is 62.4%.

This year, the Fed has already reduced its key borrowing rates by 50 bps amid growing job market concerns, despite inflationary pressures remaining well above the central bank’s 2% target.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

 

 

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