USD/CHF edged higher during Tuesday’s Asian session, trading around 0.7930 as the US Dollar (USD) extended its two-day recovery amid signs of easing trade frictions between the United States and China.
At the time of writing, the US Dollar Index (DXY) — which measures the Greenback against a basket of six major currencies — was up 0.12% at around 98.70, reflecting a modest rebound in USD demand.
US-China thaw boosts sentiment, supports USD
Investor sentiment improved after comments from US President Donald Trump on Monday suggested optimism that Washington and Beijing are moving closer to a trade agreement.
Trump and Chinese President Xi Jinping are set to meet later this month during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea — their first face-to-face discussion since Trump’s return to the White House.
Adding further support to the Greenback are growing expectations that the US government shutdown could end soon. White House economic adviser Kevin Hassett told CNBC on Monday that the closure is “likely to end sometime this week,” fueling hopes of a return to normal government operations and data releases.
Market participants will also turn their focus to the delayed US Consumer Price Index (CPI) report for September, scheduled for release on Friday. The inflation data will be closely watched for insights into the Federal Reserve’s (Fed) monetary policy outlook, especially given the lack of major economic data during the ongoing shutdown.
Swiss Franc steady as economic outlook weakens
Meanwhile, the Swiss Franc (CHF) remains relatively stable despite increasing concerns over Switzerland’s economic momentum. The State Secretariat for Economic Affairs (SECO) reaffirmed in its October outlook that the Swiss economy is expected to expand by just 1.3% in 2025, below its historical trend. SECO also cut its 2026 GDP growth forecast to 0.9% from 1.2%, citing weaker activity in the second half of 2025 and subdued export performance.
