The Swiss Franco stabilizes while the markets are attentive to the US tariff deadline.

• The Swiss Franco is stabilized after a six -day run, with the markets becoming cautious before the deadline of US tariffs of August 1.
• The USD/CHF relaxes modestly from a maximum of five weeks of 0.8151, despite the solid US data and a hard line posture of the Federal Reserve.
• The SNB reports a loss of 15.3 billion CHF for the first half of 2025, mainly driven by a sharp fall in the US dollar, eliminating 22.7 billion chf from the currency portfolio.

The Swiss Franco (CHF) remains stable against the US dollar (USD) on Thursday, breaking a six -day streak as investors return to the Franco amid a renewed demand for safe refuge. The cautious tone in the markets comes before the imminent deadline of US tariffs on Friday, August 1, with US President Donald Trump reiterating that new tariffs will be imposed on countries without finished commercial agreements. The change in feeling reflects greater uncertainty about global commercial policy, which causes a pause in the recent strength of the USD against the Swiss Franco.

The USD/CHF pair reached its highest level in more than five weeks on Wednesday, rising to 0.8125 after the Federal Reserve (Fed) maintained interest rates without changes, as expected. However, the PAR has retraced since then and is currently negotiated around 0.8126 during the American session, lowering almost 0.30% in the day. The slight recoil occurs despite the economic data of the US stronger than expected, which indicates a gain taking and a change in the feeling before the deadline of tariffs.

The latest data from the US Economic Analysis Office showed that inflation remains persistent, with the Personal Consumer Price Index (PCE) – the Fed preferred inflation indicator – increasing 0.3% monthly in June, in line with expectations and faster than the 0.2% increase in May. In annual terms, the underlying PCE remained stable at 2.8%, slightly above the 2.7%prognosis. The General Consumer Price Index (PCE) also rose 0.3% monthly and 2.6% year -on -year, exceeding both expectations, which points to persistent underlying price pressures.

Personal spending increased a monthly 0.3%, just below the 0.4% prognosis, but fell strongly from the 0.1% fall in May, pointing out a resilient consumer activity. Meanwhile, personal income increased a monthly 0.3%, exceeding 0.2% expectations and recovering from an earlier fall of 0.4%.

In addition, labor market data offered more evidence of the ongoing economic strength. Initial unemployment requests were 218K for the week, better than the expected 224K, underlining the persistent stiffness in the US labor market.

Meanwhile, new data published by the Federal Office of Statistics of Switzerland on Thursday increased further demand for Franco as a safe refuge. Royal retail sales increased by 3.8% year -on -year in June, far exceeding 0.2% expectations and accelerating from 0.3% revised on May (previously 0%). In monthly terms, retail sales rose 1.5% in June, recovering from a revised 0.4% drop in May and marking the first positive reading in five months.

Separately, the Swiss National Bank (SNB) reported a loss of 15.3 billion CHF for the first half of 2025, largely due to losses of valuation in its investments in foreign currencies, since the US dollar fell more than 10%, largely due to the impact of the tariff policies of President Trump. The fall eliminated 22.7 billion CHF in SNB currency holdings, highlighting the sensitivity of the central bank to the movements of global exchange rates. Despite a 11% increase in gold prices, which generated a gain of 8.6 billion CHF. The report underlines Central Bank exposure to global market movements and ongoing volatility derived from uncertainty in commercial policy.