USD/CHF Surges to One-Week High Near Mid-0.8300s After Trump Tariff Block

USD/CHF Jumps to Over One-Week High Near 0.8350 on Tariff Block and Hawkish Fed Tone

May 29, 2025 – The USD/CHF pair extended its bullish momentum on Thursday, climbing to its highest level in over a week, trading around the 0.8345–0.8350 zone during the Asian session. The renewed strength in the US Dollar (USD) is driven by a mix of supportive fundamental factors, including the US court's decision to block proposed trade tariffs by former President Donald Trump and hawkish signals from the Federal Reserve.

Tariff Block Boosts Risk Appetite

A significant boost to market sentiment came after the US Court of International Trade halted the enforcement of Trump’s “reciprocal” trade tariffs, ruling them unconstitutional and beyond presidential authority. This legal development eased trade tensions, lifted global risk appetite, and pushed Wall Street futures and Asian equities higher, weakening demand for the safe-haven Swiss Franc (CHF).

Stronger USD and Hawkish Fed Minutes Support Rally

Meanwhile, the US Dollar Index (DXY) advanced for a third consecutive day as traders reacted positively to Wednesday's FOMC minutes. The minutes revealed that most Federal Reserve policymakers favored maintaining current interest rates due to persistent economic uncertainty. The Fed’s caution, combined with resistance to further aggressive rate cuts, helped sustain buying interest in the USD.

The USD/CHF pair had been consolidating after hitting a near three-week low earlier in the week (below 0.8200), but this mix of favorable news has reignited bullish sentiment. The fundamental setup now favors a continuation of the pair’s recovery.

Looking Ahead

Traders will now shift their focus to key US macroeconomic data due later today, including:

• Q1 GDP Annualized
• Personal Consumption Expenditures (PCE) Prices QoQ
• Initial Jobless Claims

These releases could offer additional short-term direction for the USD/CHF pair, especially if they further support the Fed’s cautious but firm policy stance.