The USD/CHF pair traded higher around 0.8225 during Asian hours on Tuesday, supported by renewed optimism surrounding the resumption of US-China trade negotiations. Market participants are closely watching ahead of Wednesday’s US Consumer Price Index (CPI) release for May, which is expected to provide critical insights into inflationary pressures and the Federal Reserve’s rate outlook.
US and Chinese officials continued their trade discussions in London, aiming to resolve outstanding disputes following recent high-level calls between the two nations’ leaders. Former President Donald Trump expressed optimism about the talks, telling Reuters that progress was “going well” with only positive reports coming through.
The upcoming CPI data will be pivotal in shaping expectations for tariff impacts and future monetary policy. A stronger-than-anticipated inflation print could boost the US dollar against the Swiss franc (CHF).
However, ongoing geopolitical tensions remain a key factor for the Swiss currency, known for its safe-haven status. Early Tuesday saw fresh Russian missile and drone attacks on Kyiv and Odesa, with air defenses actively responding to the assaults. Additionally, persistent instability in the Middle East continues to support demand for the CHF amid heightened risk aversion.
