- The USD/CHF records slight losses while President Trump revives tariff fears before the deadline of July 9.
- The Swiss Franco is strengthened while the US dollar loses impulse due to the demand for safe refuge.
- The USD/CHF is consolidated below 0.800 before the signing of the ‘Great Beautiful bill’ of Trump.
The Swiss Franco (CHF) is registering modest profits against the US dollar (USD) on Friday, since renewed tax and commercial concerns boost the demand for safe refuge coins.
The USD/CHF torque is descending as investors weigh the long -term implications of the newly signed “Great Beautiful bill” and an imminent tariff deadline of July 9 that threatens to rekindle market volatility.
A signature ceremony will be held at the White House on Friday. While President Trump celebrates the approval of the legislation, the Tax and Expenses bill raises the US debt roof in an amazing $ 5 billion. Although this helps to avoid a short -term government financing crisis, adds significantly to the long -term federal debt.
According to estimates of the Congress Budget Office (CBO), the bill will be expected to increase the US budget deficit at approximately $ 3.3 billion during the next decade, approximately $ 1 billion more than the figures provided in the version previously approved in the Chamber.
The growing deficit and debt burden have weighed on the feeling of investors to the US dollar.
Increases in government debt generate concerns about long -term fiscal sustainability and inflation risks. This erosion of trust can lead to a sale pressure on the dollar, particularly in front of low -performance safe shelters such as the Swiss Franco.
Meanwhile, tariff -related tensions are reviving the nerves of the market. With the deadline of July 9 approaching, President Trump has suggested that formal letters will be sent that describe new commercial terms to foreign governments as soon as today.
The Treasury Secretary, Scott Besent, failed to calm the markets on Thursday when he refused to confirm whether the administration would postpone the tariff deadline, stating only that “we will do what the president wants, and he will be the one who determines if they are negotiating in good faith.”
This combination of fiscal expansion and uncertainty in commercial policy could create a favorable background for the Swiss Franco. As a result, the USD/CHF remains under a modest pressure, with caution operators before the developments of next week on the tariff front and any additional clue on the fiscal trajectory of the USA.
The USD/CHF is consolidated below 0.8000
The 4 -hour graph illustrates a consolidation of the USD/CHF price action above 0.7940. The shallow sails reflect indecision in the light of the lack of US liquidity due to independence day holidays.
While the simple mobile average (SMA) of 20 periods provides short -term support at 0.7927, the psychological level of 0.7950 acts as resistance.
The bassists were quick to retal after the USD/CHF bundles pushed prices at a maximum of 0.7987 on Thursday, below the next key psychological level of 0.8000.
The Relative Force Index (RSI) in 48 reflects that the impulse in the lower duration frame remains close to the neutral territory.
On the positive side, a movement above Thursday and a break of 0.8000 could see the USD/CHF rise to the Fibonacci setback level of 23.6% of the May-Julio fall about 0.8015.
Meanwhile, if the weakness of the US dollar persists, a break below the minimum of Thursday around 0.7900 could see the USD/CHF again try the minimum of several years on Tuesday around 0.78722.
Tariffs – Frequently Questions
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
