USD/CHF Slides to Six-Week Low as Swiss GDP Surprises on the Upside

Swiss Franc Strengthens on Robust Q1 GDP and Global Risk Aversion

The USD/CHF currency pair slumped nearly 0.70% on Monday, trading around 0.8178 during the European session, marking its lowest level since April 21. The drop reflects sustained Swiss Franc (CHF) demand amid stronger-than-expected Swiss economic data and renewed risk-off sentiment across global markets.

Swiss Q1 GDP Beats Forecasts, Retail Sales Soft

Switzerland’s Q1 GDP expanded by 0.5% QoQ, exceeding both the previous quarter's 0.3% and consensus expectations of 0.4%. On a YoY basis, the economy grew 2.0%, with growth driven mainly by rising exports, particularly to the United States ahead of potential tariff impositions.

Meanwhile, April Retail Sales disappointed slightly, growing 1.3% YoY—below the forecast of 1.7%. While this hints at some consumer softness, the robust GDP data overshadowed concerns and boosted CHF sentiment.

Outlook – Swiss CPI, Powell’s Speech, US PMI in Focus

Looking ahead, traders will watch for Swiss CPI data due Tuesday, which could influence expectations around SNB policy action. In the US, ISM Manufacturing PMI and a speech by Federal Reserve Chair Jerome Powell later today may shift market expectations around rate cuts in 2025.

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