USD/CHF Slips as Swiss GDP Beats Forecasts, US Data Mixed

USD/CHF Falls as Strong Swiss GDP and Weak US Data Pressure Dollar

The USD/CHF currency pair moved lower on Thursday, trading around 0.8360, as a stronger-than-expected Swiss GDP reading and mixed US economic data pressured the US Dollar.

Switzerland’s economy expanded by 0.7% in Q1 2025, marking the fastest pace of growth since early 2023. The services sector led the expansion, with industry also contributing positively, according to the Swiss State Secretariat for Economic Affairs.

Meanwhile, US data came in mixed. While April retail sales rose slightly by 0.1%, beating flat expectations, the Producer Price Index (PPI) came in softer, signaling cooling inflationary pressures. This weakened the US Dollar and failed to support the pair.

Swiss inflationary trends remain subdued. Producer and Import Prices fell 0.5% year-on-year in April, down from a 0.1% decline in March. On a monthly basis, prices rose just 0.1%, below the expected 0.2%.

Additionally, Switzerland continues to seek a trade agreement with the United States to avoid potential tariffs. Finance Minister Karin Keller-Sutter described last week’s meeting with US Treasury Secretary Scott Bessent as “constructive,” expressing hopes of following the UK’s example in reaching a bilateral deal with the Trump administration.