The USD/CHF pair decreases because geopolitical risks are increasing, which makes people want to buy more Swiss Francs.
Donald Trump's threat to impose tariffs is causing worries about a trade war and is affecting the value of the US Dollar.
Traders are looking at the US PCE inflation numbers, GDP data, and Swiss Producer and Import Prices.
The Swiss Franc (CHF) is drawing more buyers compared to the US Dollar (USD) on Monday. This is because rising tensions between the United States (US) and the European Union (EU) about control of Greenland are increasing demand for the safe-haven Franc. Right now, the USD/CHF exchange rate is around 0.7975, which is down by almost 0.70% for the day.
Over the weekend, US President Donald Trump shared on Truth Social that a 10% tax on imports would start on February 1st on eight European countries, such as Denmark, Germany, France, the UK, Sweden, Norway, the Netherlands, and Finland. He also said this tax would go up to 25% by June unless a deal is made for the full and total purchase of Greenland.
The announcement has made people worry again about a bigger trade war and got strong criticism from European leaders, who are saying they might take back actions. Trump has kept saying that Greenland is very important for the US and its safety, and he claims that China and Russia want to have control over the area. He also says there's ânot a thingâ Denmark can do about it.
Because of this, people's trust in the Greenback as a safe choice has dropped, since Trump's frequent use of tariffs as a tool keeps creating doubt about the US economy.
The US Dollar Index (DXY) measures how strong the US dollar is compared to six major currencies. Right now, it's at 99.11, which is a drop of more than 0.20%.
Looking ahead this week, US markets will be closed on Monday for Martin Luther King Jr. Day. Next, on Thursday, there will be a delayed report on the Personal Consumption Expenditures (PCE) inflation data, along with the annualized third-quarter Gross Domestic Product (GDP) release. On Friday, the focus will be on the preliminary S&P Global PMI surveys and the University of Michigan consumer sentiment data.
In Switzerland, traders are waiting to see the Producer and Import Prices on Tuesday to get a better understanding of how inflation is affecting the country.
Markets will also watch the World Economic Forum in Davos, where Swiss National Bank (SNB) Chairman Martin Schlegel is set to speak on Tuesday. US President Donald Trump is expected to speak at the forum, focusing on trade and geopolitical risks. Any new news about tariffs, Greenland, or US-EU relations could help push investors towards the Swiss Franc, CHF.
Donald Trump's threat to impose tariffs is causing worries about a trade war and is affecting the value of the US Dollar.
Traders are looking at the US PCE inflation numbers, GDP data, and Swiss Producer and Import Prices.
The Swiss Franc (CHF) is drawing more buyers compared to the US Dollar (USD) on Monday. This is because rising tensions between the United States (US) and the European Union (EU) about control of Greenland are increasing demand for the safe-haven Franc. Right now, the USD/CHF exchange rate is around 0.7975, which is down by almost 0.70% for the day.
Over the weekend, US President Donald Trump shared on Truth Social that a 10% tax on imports would start on February 1st on eight European countries, such as Denmark, Germany, France, the UK, Sweden, Norway, the Netherlands, and Finland. He also said this tax would go up to 25% by June unless a deal is made for the full and total purchase of Greenland.
The announcement has made people worry again about a bigger trade war and got strong criticism from European leaders, who are saying they might take back actions. Trump has kept saying that Greenland is very important for the US and its safety, and he claims that China and Russia want to have control over the area. He also says there's ânot a thingâ Denmark can do about it.
Because of this, people's trust in the Greenback as a safe choice has dropped, since Trump's frequent use of tariffs as a tool keeps creating doubt about the US economy.
The US Dollar Index (DXY) measures how strong the US dollar is compared to six major currencies. Right now, it's at 99.11, which is a drop of more than 0.20%.
Looking ahead this week, US markets will be closed on Monday for Martin Luther King Jr. Day. Next, on Thursday, there will be a delayed report on the Personal Consumption Expenditures (PCE) inflation data, along with the annualized third-quarter Gross Domestic Product (GDP) release. On Friday, the focus will be on the preliminary S&P Global PMI surveys and the University of Michigan consumer sentiment data.
In Switzerland, traders are waiting to see the Producer and Import Prices on Tuesday to get a better understanding of how inflation is affecting the country.
Markets will also watch the World Economic Forum in Davos, where Swiss National Bank (SNB) Chairman Martin Schlegel is set to speak on Tuesday. US President Donald Trump is expected to speak at the forum, focusing on trade and geopolitical risks. Any new news about tariffs, Greenland, or US-EU relations could help push investors towards the Swiss Franc, CHF.
