USD/CHF falls below 0.80000 amid weakening US dollar
The safe-haven Swiss franc fell yesterday, drawing a bearish candle with a rather long body and a small shadow at the bottom of the candle. The price formed a high of 0.80488 low of 0.79792, and closed at 0.80024. This decline further strengthened the value of the Swiss franc throughout 2025 and even became the highest exchange rate since 2015 against the US dollar.
Investors still seem worried about the negative impact of Trump's tariff policy and the added pressure on the US dollar. US President Trump rocked the market on Wednesday, calling the Fed Chairman "the worst" and "a person with an average mentality" and suggesting that he might name his successor well before the end of his term, which falls in May next year. This would be a highly unusual move, possibly creating a shadow chairman that would damage the credibility of the world's major central bank.
Meanwhile, Jerome Powell defended that the bank is well-positioned to react to inflationary pressures likely to emerge from Trump's tariffs and declined to signal an imminent interest rate cut amid accusations from Republican senators of political partisanship.
The US president's criticism of Powell has raised speculation that it will reduce the Fed's credibility and trigger a sell-off in the US dollar that has eroded the US dollar's status as the world's reserve currency.
On the other hand, the threat of tariffs still looms with a June 9 deadline, without progress in a trade deal, causing investor concerns about the negative impact of tariffs and an already weak US economy, adding pressure on the US dollar.
Today, investors will shift their focus to Personal Consumption Expenditure/PCE data, an important indicator that provides clues about the Fed's future rate cut path, which could affect currency values.
