USD/CHF extends losses to fresh 14-year lows sub-0.8000 amid generalised US Dollar weakness

• The US Dollar extends losses below 0.8000 for the first time since 2011.
• Weak US data and higher hopes of Fed cuts are hammering the USD.
• The SNB shows concern about the impact of tariffs and sees the Swiss GDP growing between 1% and 1.5% in 2025.

The Swiss Franc appreciates further, as the USD/CHF hits levels below 0.8000 for the first time since September 2011. The US Dollar is tumbling on a mix of improving appetite for risk and weak US data that is feeding hopes of Fed rate cuts.

US macroeconomic figures released on Wednesday added pressure on the Federal Reserve to cut interest rates further. The Q1 Gross Domestic Product was revised lower, to a 0.5% contraction, from the previously estimated -0.2% with a tepid consumer weighing following Trump’s aggressive tariff policy.

Beyond that, US Weekly Jobless Claims declined somewhat, but continuing claims remained at their highest levels since the post-pandemic period, highlighting a softening labour market

In this context, the focus today is on the US PCE Prices Index, which is expected to show that inflation remained at moderate levels, with no significant impact from tariffs so far, which would cement hopes of further Fed easing and add negative pressure on the USD.

In Switzerland, the SNB’s Quarterly Bulletin underscored the central bank’s concerns about the risk for economic growth stemming from trade uncertainty and forecasted a GDP growth of between 1% and 1.5% for this year.