USD/CHF Holds Above 0.8200 as US-China Trade Talks Lift Risk Sentiment

USD/CHF Remains Above 0.8200 as US-China Trade Talks Ease Market Tensions

Forex Market Update – June 10, 2025

The USD/CHF pair is trading in positive territory, hovering near 0.8225 during early Asian trading on Tuesday. The US Dollar (USD) is gaining traction amid easing concerns over US-China trade tensions, while geopolitical factors offer partial support to the Swiss Franc (CHF).

Trade Talks Improve Sentiment, Favoring the USD

Renewed optimism over US-China trade talks, set to resume on Tuesday in London, has lent support to the USD. President Trump mentioned receiving “only good reports” from ongoing negotiations, raising market expectations for a potential breakthrough on trade, tech, and rare earth issues.

This development has reduced risk aversion, favoring higher-yielding currencies like the USD, while temporarily limiting demand for safe havens such as the CHF.

Related Article: How US-China Talks Shape Forex Market Sentiment

Eyes on US CPI Inflation for May

Looking ahead, the spotlight shifts to Wednesday’s release of the US Consumer Price Index (CPI) for May. A hotter-than-expected print may strengthen expectations that the Federal Reserve will maintain a hawkish stance, thereby pushing the USD higher.

If inflation data confirms upward price pressure, USD/CHF may extend its bullish move beyond current levels.

Must Read: What CPI Data Means for the Dollar and Interest Rates

Geopolitical Tensions May Cap Gains

While sentiment is positive for now, persistent geopolitical tensions, particularly in Eastern Europe and the Middle East, continue to provide underlying demand for safe-haven assets, including the Swiss Franc. This could limit aggressive upside in USD/CHF unless trade outcomes or US data surprise to the upside.

USD/CHF Technical Outlook

• Support Levels: 0.8190, 0.8160
• Resistance Levels: 0.8245, 0.8280

A break above 0.8245 may trigger further bullish momentum, while a drop below 0.8190 could expose downside risk.

Conclusion

USD/CHF remains stable above 0.8200 as easing US-China trade tensions and upcoming US CPI data shape investor sentiment. With geopolitical risks still present, short-term movement may depend on whether upcoming inflation figures solidify expectations for the Fed's next move.