The USD/CHF pair continues to experience downward movement, trading in negative territory for the third consecutive day at approximately 0.7960 during the early European trading hours on Tuesday. The Swiss Franc appreciates against the US Dollar as President Donald Trump’s tariff threats generate increased demand for safe-haven assets. USD/CHF declines to approximately 0.7960 during the early European session on Tuesday. Trump’s tariff threats have led to what is referred to as the “Sell America” trade. Market participants prepare for the release of the Swiss December Producer and Import Prices data, along with the speech from SNB’s Schlegel.
On Saturday, Trump announced plans to implement a 10% tariff on February 1 for goods imported from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom. The increase would reach 25% in the absence of an agreement by June 1. Concerns stemming from the US regarding the European Union’s stance on Greenland have initiated what is referred to as the “Sell America” trade, leading to noticeable selling pressure on the US Dollar overall.
“Investors were offloading dollar assets due to concerns over extended uncertainty, weakened alliances, diminishing confidence in U.S. leadership, possible retaliation, and a rapid shift away from dollar reliance,” stated Tony Sycamore. Market participants will monitor the Swiss Producer and Import Prices for December, which will be released later on Tuesday, in addition to the address from Swiss National Bank Chairman Martin Schlegel.
In the current climate, indications of rising geopolitical tensions or economic instability may lead to an appreciation of the Swiss Franc, recognized for its status as a safe-haven currency.