USD/CHF Slides to 0.79696 as 10% Tariff Threat Sparks Safe-Haven Rus
The USD/CHF pair extended its decline during Monday’s European session, dipping to an intraday low of 0.7978 and settling near 0.79696...
Quick overview
- The USD/CHF pair declined to an intraday low of 0.7978, reflecting a 0.55% drop amid a weakening US Dollar Index.
- President Trump's announcement of a 10% tariff on imports from key European nations has heightened trade tensions and geopolitical uncertainty.
- The Swiss Franc is gaining as investors seek safe-haven assets, influenced by the ongoing Greenland dispute and tariff threats.
- Technical analysis indicates that USD/CHF remains under pressure, with a bearish bias unless it breaks above the descending channel.
The USD/CHF pair extended its decline during Monday’s European session, dipping to an intraday low of 0.7978 and settling near 0.79696, down 0.55%. The drop comes as the US Dollar Index (DXY) fell 0.25% to 99.15, reflecting broad-based weakness against major currencies.
The latest pressure stems from President Trump’s announcement of a 10% tariff on imports from key European nations—including Germany, France, and the UK—starting February 1. The move follows EU criticism of Washington’s controversial plan to purchase Greenland, sparking diplomatic friction and trade concerns.
EU leaders, including Ursula von der Leyen, warned that such tariffs could escalate tensions and damage transatlantic relations. Her statement on X emphasized the importance of territorial integrity and sovereignty, signaling that Europe may respond with countermeasures.
Swiss Franc Gains on Safe-Haven Appeal
As geopolitical uncertainty grows, investors are turning to safer assets. The Swiss Franc (CHF) has benefited from this shift, outperforming amid the Greenland dispute and tariff threats.
With the World Economic Forum in Davos kicking off Tuesday, attention is now on central bank commentary—especially from Swiss National Bank Chairman Martin Schlegel, whose remarks could influence CHF sentiment further.
USD/CHF Technical Setup
Technically, USD/CHF remains under pressure within a descending channel, with price action consistently forming lower highs and lower lows.
- Current price: 0.79696
- Resistance: 0.80200
- Support: 0.79200
- RSI: 54.53 (neutral), 35.41 (bearish bias)
- Moving averages: Price below both 50- and 200-period MAs
Candlestick formations show indecision, suggesting a pause before the next move. If the pair fails to reclaim 0.79850, sellers may drive it toward 0.79400 and 0.79200. A breakout above the channel could shift sentiment, but for now, the bias remains bearish.
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