USD/CHF slumps below 0.8500 amid risk-off mood, Trump tariff fallout
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USD/CHF falls to near 0.8495 in Monday’s early European session.
Risk-off mood and the fears of a deep economic downturn boost the Swiss Franc, a safe-haven currency.
US NFP increased by 228K in March vs. 135K expected.
The USD/CHF pair attracts some sellers to around 0.8495 during the early European session on Monday. The Swiss Franc (CHF) strengthens against the US Dollar (USD) due to the safe-haven flows after the market panic caused by US President Donald Trump's sweeping tariffs deepened and increased worries of a global recession.
Investors are flocking to safe-haven assets after US President Donald Trump last week unveiled sweeping global tariffs on goods imported from most US trading partners The CHF has appreciated against the USD as traders consider the best options for cushioning the impact of Trump’s tariffs.
Furthermore, the persistent geopolitical tensions contribute to the CHF’s upside. The Kherson regional military administration Oleksandr Prokudin reported on Sunday that Russians shelled more than 30 localities in the Kherson region, including residential areas of Kherson. Seven people were wounded.
Data released by the Labor Department on Friday revealed that the US Nonfarm Payrolls (NFP) rose by 228K in March from the revised 117K in February. This reading came in stronger than the 135K expected. Meanwhile, the US Unemployment Rate rose to 4.2% in March versus 4.1% prior, higher than the 4.1% forecast. Average Hourly Earnings increased 0.3% MoM in March, in line with the market consensus.
Investors wagered that the mounting risk of a deep economic downturn could pave the way for the Federal Reserve (Fed) interest rate cut as early as May, which might drag the Greenback lower in the near term. However, the renewed US Dollar demand amid the oversold condition might help limit the pair’s losses for the time being.
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