Returning to regularly scheduled programming from the last seven days, dollar downside has continued early into this week’s trading, with USD/CHF currently poised to extend a seven-day losing streak.
Cutting rates to 0.00% in their June decision, which would typically weaken the franc, recent policy decisions have done little in curbing dollar-franc selling pressure, with markets overwhelmingly bearish on the U.S. dollar.
With recent negotiations breaking down somewhat, nervousness about the future of tariffs continues to weigh negatively on USD.
Otherwise, the ever-polarising ‘Big Beautiful Bill’, courtesy of POTUS Donald Trump, continues to make its way through the Senate, raising questions on the implications to ballooning U.S. debt.
Prior to recent weeks, and as an interesting parallel, the last time USD/CHF traded below 0.8000 was in 2011, shortly following the S&P’s downgrade of the US Federal Debt credit rating for the first time in history.
Naturally, some similarities are to be had between 2011 and 2025, with Moody’s recently downgrading US debt from AAA to AA1.
