- The USD/CHF falls to the neighborhood of 0.8100 and bouncing.
- The demand for the sure shelter holds the Swiss Franco.
- Attention now focuses on the publication of US production prices.
The new Round of China Tariffs reinforces the CHF and hits the USD
On Friday, Beijing drastically increased tariffs on US imports to 125%, responding to President Trump’s movement to increase taxes on Chinese goods to 145%. This countermelted has intensified the tension in a commercial war that now threatens to destabilize global supply chains.
That said, investors continue to seek refuge in the safe shelter space, which gives an additional impulse to the Swiss currency and leads to the pair to go back to the neighborhood of 0.8100 for the first time since September 2011.
Meanwhile, the fears of stagflation in the US have been increasing in recent days, harming the US dollar and causing a strong correction in the US dollar index (DXY). The bearish tone in the US dollar has also been supported by the revaluation of investors on more fees of fees by the Federal Reserve (Fed) this year, especially after the US CPI data went below the consensus in March.
What follows?
Later, the operators will be attentive to the US inflation figures, since March production prices will occupy the center of the stage. At the same time, the preliminary publication of the Michigan consumer’s feeling index will also attract a lot of attention, especially its inflation component, which often offers early clues about consumer spending and price pressures.
The day until now
Earlier on Friday, Switzerland’s consumer weather worsened slightly to -35 in March, according to Seco.
Key levels in the technical panorama
The next down level for USD/CHF is the floor of 2025 in 0.8109 (April 11). The loss of this level could open the door to the round level of 0.8000, before the minimum of September 2011 at 0.7710 (September 2).
Upwards, the next relevant level is in the 200 -day SMA at 0.8787, ahead of the weekly maximum of 0.8809 (March 14).
The pair is negotiated in severely overene conditions around 18, which could trigger a probable technical rebound in a not too distant future.
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.
