USD/CHF Rises Above 0.7970 as Tariff Fears Fuel Safe-Haven Demand

USD/CHF Breaks Above 0.7970 on Surging Risk Aversion and Tariff Tensions

Dollar Edges Higher as Safe-Haven Flows Dominate Forex Markets

The US Dollar (USD) and the Swiss Franc (CHF) emerged as the strongest performers in Monday’s session, driven by escalating risk aversion. The USD/CHF pair surged above the 0.7970 level, supported by safe-haven flows as markets grow increasingly anxious ahead of the now August 1 US tariff implementation.

Tariff Uncertainty Sparks Flight to Quality

Over the weekend, President Donald Trump confirmed he would begin notifying selected countries of upcoming tariffs. However, details remain scarce. Treasury Secretary Scott Bessent added to the ambiguity by suggesting an extended deadline from July 9 to August 1, further clouding the trade outlook.

These developments have sent market participants scrambling for safe assets, giving the US Dollar a moderate edge over the Franc despite both being traditional havens.

Technical Outlook: USD/CHF Tests Resistance Near 0.8000

• The pair is trading just below the psychological resistance at 0.8000.
• A break above 0.8000 could expose a move toward 0.8050 in the short term.
• Support is seen near 0.7875, last week’s 14-year low.

Fed Minutes in Focus: Will the Dollar Hold Its Gains?

While the US Dollar is currently benefiting from safe-haven demand, attention will soon shift to the Federal Reserve's June policy meeting minutes, due later this week.

"There’s concern that a dovish tilt in the minutes could challenge the USD’s rebound," say analysts at TreduFX.

Although last week's strong NFP report has cooled expectations for a July rate cut, any sign of policy divergence within the Fed could limit further USD gains.

Key Drivers for USD/CHF This Week:

• Tariff letter rollout and trade reaction from key economies.
• US Fed minutes (Wednesday).
• Ongoing sentiment toward stagflation risks tied to tariffs and inflation.
• Technical resistance at 0.8000 and 0.8050.

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