URGENT UPDATE: The USD/CHF currency pair has rebounded from cycle lows today, driven by positive comments from former President Donald Trump regarding US-China trade relations. This comes as US Treasury yields recover, erasing losses from earlier in the week.
Market sentiment has been volatile, influenced heavily by Trump’s tariffs threat and ongoing domestic issues, including a government shutdown that continues to delay critical US economic reports. Investors are bracing for the upcoming US CPI report, set to be released today, July 15, 2025, despite the shutdown, making this a pivotal moment for the US dollar.
The dollar’s performance remains mixed, with analysts emphasizing the necessity for robust US economic data to support the ongoing “repricing trade,” particularly concerning the labor market. Any setbacks in this regard could further weigh on the greenback, raising concerns about potential growth slowdowns.
According to market analysts, if negative developments arise in US-China relations before the CPI release, the report’s impact might be overshadowed by broader economic fears. Currently, the USD/CHF pair is navigating a crucial juncture after breaking below a significant upward trendline last week, hitting a low of 0.7872.
“If the price rolls over again, we can expect buyers to step in around the 0.7872 level,” analysts noted, highlighting the defined risk below this point as a potential trigger for a rally towards 0.8073.
Meanwhile, the Swiss National Bank (SNB) has maintained steady interest rates, with President Thomas Jordan signaling a high threshold for further cuts. The latest inflation prints from Switzerland show a slight rebound, but analysts stress that achieving the SNB’s 2% inflation target remains a long-term challenge.
As the USD/CHF trades just above a downward trendline, market participants are closely monitoring price action around the 0.7935 resistance level. Sellers are likely to remain active below this resistance, while buyers are looking for a breakout to bolster bullish positions.
Today’s focus is squarely on the developing situation with US-China relations and the impending US CPI report. With significant shifts in risk sentiment occurring rapidly, traders are advised to remain vigilant.
Stay tuned for further updates as this story develops, including insights on the implications of today’s economic data and its potential impact on global markets.
