- The USD/CHF struggles to maintain the new minimum in more than a decade around 0.8000 due to the continuous performance of the US dollar.
- Investors fear that Powell’s replacement in the Fed, based on a vision contrary to Trump’s, endangers the credibility of the Fed.
- SNB anticipated 1% -1,5% GDP growth for the current year.
The USD/ChF pax lifting near a minimum in more than a decade around 0.8000 during the Asian session on Friday. The Swiss frank torque struggles to find land while the US dollar (USD) continues to face sales pressure amid concerns about the autonomous status of the Federal Reserve (Fed) and uncertainty around the end of the 90 -day tariff period on July 9.
During the Asian negotiation hours, the US dollar index (DXY), which tracks the value of the dollar against six main currencies, quietly quotes about a new minimum of three and a half years around 97.00.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.03% | 0.09% | 0.03% | 0.07% | 0.03% | 0.13% | |
| EUR | -0.08% | -0.10% | -0.02% | -0.07% | -0.02% | -0.18% | -0.01% | |
| GBP | -0.03% | 0.10% | 0.10% | 0.00% | 0.04% | -0.04% | 0.18% | |
| JPY | -0.09% | 0.02% | -0.10% | -0.06% | -0.03% | -0.23% | 0.11% | |
| CAD | -0.03% | 0.07% | 0.00% | 0.06% | 0.07% | -0.12% | 0.14% | |
| Aud | -0.07% | 0.02% | -0.04% | 0.03% | -0.07% | -0.14% | 0.12% | |
| NZD | -0.03% | 0.18% | 0.04% | 0.23% | 0.12% | 0.14% | 0.26% | |
| CHF | -0.13% | 0.00% | -0.18% | -0.11% | -0.14% | -0.12% | -0.26% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
The attractiveness of the US dollar as a safe refuge has decreased significantly, since the president of the United States (USA), Donald Trump, attacks this week again against the president of the Fed, Jerome Powell, for not supporting the expansion of monetary policy, and officials have confirmed that the president will select Powell’s successor for the summer, the Wall Street Journal (WSJ) reported.
Such scenario generates concerns about the credibility of the Fed, assuming that Trump’s contender decisions will be biased towards his economic agenda.
Meanwhile, investors are also concerned about the end of the 90 -day tariff deadline on July 9, since Washington has not closed important bilateral agreements with those with whom most of their trade, such as the Eurozone, China and Japan.
In Friday’s session, investors will focus on the data of the US Personal Consumption Expenditure Index (PCE) for May, which will be published at 12:30 GMT.
In the Swiss region, the quarterly bulletin of the Swiss National Bank (SNB) of the second quarter showed that economic growth will be affected by the risk of global trade. The Central Bank expects the growth of the Gross Domestic Product (GDP) to be in a range between 1% and 1.5% for the year as a whole.
Last week, the SNB brought 0% interest rates to counteract inflationary pressures in cooling and kept the door open to push them to the negative territory if the downward price pressures persist.
SNB FAQS
The Swiss National Bank (SNB) is the central bank of the country. As an independent Central Bank, its mandate is to guarantee the stability of medium and long term prices. To guarantee price stability, SNB aims to maintain adequate monetary conditions, which are determined by the level of interest rates and exchange rates. For SNB, price stability means an increase in the Swiss consumption price index (CPI) below 2% per year.
The Board of Directors of the Swiss National Bank (SNB) decides the appropriate level of its official interest rate depending on its price stability objective. When inflation exceeds the objective or it is expected that it will exceed it in the predictable future, the bank will try to control excessive price growth by raising its official interest rate. The highest interest rates are usually positive for the Swiss Franco (CHF), since they lead to greater returns, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the CHF.
Yes. The Swiss National Bank (SNB) has intervened regularly in the exchange market to prevent the Swiss Franco (CHF) from being too much in front of other currencies. A strong CHF harms the competitiveness of the powerful export sector of the country. Between 2011 and 2015, the SNB implemented a fixed exchange rate with the euro to limit the progress of the CHF against the latter. The bank intervenes in the market using its large currency reserves, generally buying foreign currencies such as the US dollar or the euro. During high inflation episodes, in particular due to energy, SNB refrains from intervening in markets since a strong CHF makes energy imports cheaper, cushioning the price shock for households and suine companies.
SNB once meets the quarter (in March, June, September and December) to evaluate monetary policy. From each evaluation a decision on monetary policy and the publication of a medium -term inflation prognosis follow.
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.
