USD/CHF Dips Below 0.8200 as Markets Brace for US-China Trade Talks

USD/CHF Dips Below 0.8200 as Markets Brace for US-China Trade Talks

Swiss Franc Firms as US Dollar Slips

The USD/CHF currency pair continued its descent on Monday, falling over 0.2% in early European trading to hover near 0.8200, a key psychological level. The move comes as the US Dollar weakens across the board, with markets focusing on today’s US-China trade negotiations in London.

Trump Talks Up Trade Talks

Risk sentiment is buoyed slightly by President Donald Trump’s weekend remarks that the bilateral discussions would go “extremely well.” Still, the Greenback is struggling to regain traction, particularly against safe-haven currencies like the Swiss Franc (CHF).

SNB Rate Decision Looms

The Swiss National Bank (SNB) is expected to lower interest rates at its next policy meeting on June 19, adding pressure to the CHF in the medium term. However, in the short run, safe-haven demand is keeping the Franc bid.

US CPI: Key Inflation Signal on Wednesday

Traders now await the US Consumer Price Index (CPI) data for May, due Wednesday. If inflation rises faster than expected, it may influence the Federal Reserve's near-term policy stance. Currently, expectations for a rate cut remain subdued following last Friday’s strong US Nonfarm Payrolls report.

Technical Snapshot

• Support: 0.8150
• Resistance: 0.8250
• Bias: Bearish below 0.8200
• Next Event Risk: US CPI, SNB decision

Related Tredu.com Articles:

• Swiss Franc Outlook: What to Expect from the SNB Rate Meeting
• US Dollar Trends: CPI and Fed Blackout Period in Focus
• US-China Trade Talks: Impact on Safe-Haven Currencies