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• USD/CHF stays close to the 0.8099 level—its lowest point since September 2011.
• The Swiss Franc continues to benefit from safe-haven demand, its appeal could ease if global risk sentiment improves.
• Deutsche Bank has revised its outlook, now forecasting a 25 basis point rate cut in December.

USD/CHF moves sideways after registering losses in the previous three successive sessions, hovering around 0.8150 during the European trading hours on Tuesday. The pair remains within striking distance of the 0.8099 mark—its lowest level since September 2011—briefly touched on April 11.

The Swiss Franc (CHF) remains supported by safe-haven flows as investor uncertainty lingers amid unpredictable US trade and economic policies. Some market relief emerged after US President Donald Trump announced temporary exemptions on key tech products—including semiconductors and smartphones—from the latest round of tariffs on Chinese imports.

However, the CHF’s safe-haven appeal may be tempered by an improvement in global risk sentiment. On Monday, Trump signaled potential temporary relief from the proposed 25% auto tariffs, aiming to give automakers time to adjust supply chains.

Meanwhile, downside pressure on the USD/CHF pair may be limited as the US Dollar attempts to stabilize amid growing concerns over stagflation. In early Tuesday trading, Atlanta Fed President Raphael Bostic stated that the Federal Reserve still has “a long way to go” to bring inflation down to its 2% target, cooling expectations for imminent rate cuts.

In a notable policy shift, Deutsche Bank now projects a 25 basis point rate cut in December—its first anticipated cut for 2025—followed by two additional cuts in Q1 2026. The bank sees the terminal rate settling between 3.5% and 3.75%.

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