American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

USD/CHF forecast as US tariffs on Switzerland kicks off

by admin August 7, 2025
August 7, 2025
USD/CHF forecast as US tariffs on Switzerland kicks off

The USD/CHF exchange rate remains under pressure this week as market participants focused on the new tariffs on most goods imported from Switzerland. It was trading at 0.8040, down by over 13% from its highest point this year.

US and Switzerland trade war

The main catalyst for the USD/CHF is the new tariffs on all goods coming from Switzerland. In a statement last week, Donald Trump said that most goods coming from Switzerland ports will be charged a 37% tariff.

At the same time, the US is considering more tariffs on imported medicines, which are an important part of the Swiss economy. 

The tariffs are kicking off after Swiss President Karin Keller-Sutter failed to reach an agreement after her visit to Washington this week. Instead of meeting with Trump and other trade officials, she met with Marco Rubio, the Secretary of State. 

The new tariffs on Swiss goods mean that a vibrant trade relationship is being put to the test. The two countries do trade worth over $188 billion a year, with goods being worth $88 billion. 

Data shows that US exports to Switzerland were worth $25 billion, while imports were $63 billion. However, the US has a bigger service surplus as it exports totalled $64 billion in 2024. 

Trump has justified tariffs on Switzerland to the country’s trade barriers and called it one-sided. The reality, however, is that Trump only looks at the trade deficit. Switzerland abolished all industrial tariffs since January last year. 

Swiss franc as a safe-haven

The main reason why the Swiss franc has jumped is that analysts and investors see it as a safe haven. Unlike the United States, Switzerland is not entangled in foreign wars and is often neutral on many issues. 

At the same time, Switzerland has a public debt o about $352 billion, which is about 37% of its GDP of $866 billion. The debt per capita is about $38,900.

In contrast, in the United States, the debt per capita is about $105,970, as the total debt has jumped to nearly $37 trillion. 

There are signs that the US economy is deteriorating. A report released last week showed that the US added just 73,000 jobs in July, the worst figure this year. Therefore, market participants anticipate that the Federal Reserve will cut interest rates in September.

USD/CHF technical analysis

USD/CHF chart | Source: TradingView

The daily chart shows that the USD to CHF exchange rate has been in a strong downtrend in the past few months. It recently topped at 0.9210, its highest point in September 2023, May 1, and January this year. 

The pair has moved below the key support at 0.8335, its lowest point in January last year. It remains below the 50-day and 200-day Exponential Moving Averages (EMA). 

Therefore, the USD/CHF exchange rate will continue falling as sellers target the support at 0.7873, the lowest level this year. A move below that level will point to more downside, potentially to the support at 0.7800.

The post USD/CHF forecast as US tariffs on Switzerland kicks off appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
USD/ZAR forecast: rand outlook as South Africa tariffs start
next post
USD/MXN forecast ahead of Banxico decision, Mexico inflation data

Related Posts

Cyprium and Glencore Announce Commercial Strategic Partnership

July 26, 2024

pH7 Receives BC Government Funding for Critical Metals...

March 29, 2024

CLEO Appoints CRO to Manage U.S. Ovarian Cancer...

April 12, 2024

Top crypto price predictions: Fartcoin, Ethena, Pi Network

March 24, 2025

Algorand price prediction: rare pattern points to more...

November 19, 2024

FTSE 100 forecast ahead of Barclays, Unilever, BAT,...

February 7, 2025

Quantum Computing Inc.’s (QUBT) stock surged, but has...

November 14, 2024

Freegold Continues to Intercept Higher Grade Mineralization in...

February 8, 2024

Apple stock price forecast: will AAPL rise or...

January 24, 2025

Here are the best performing dividend aristocrats stocks...

February 6, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Zinc prices rally on US rate cut hopes, despite supply oversupply

      August 27, 2025
    • Mitsubishi exits Japanese offshore wind projects citing soaring costs

      August 27, 2025
    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025

    Categories

    • Business (3,773)
    • Investing (2,787)
    • Latest News (2,050)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved