The USD/CHF attracted new sellers during Wednesday's Asian trading session and eroded most of the gains that had rebounded slightly the previous day. The spot price fell back to near the median of 0.8100, hitting a low of 0.8128, a decrease of about 1.28%. In the context of the general weakness of the US dollar, the exchange rate is approaching the ten-year low of 0.8098 hit last Friday.

In fact, due to weakened confidence in the US economy, the US dollar index tracking the US dollar against a basket of currencies is hovering around its lowest level since April 2022. In addition, people are betting that the Federal Reserve will soon resume its interest rate cutting cycle and reduce borrowing costs by 100 basis points by 2025, which continues to weaken its attractiveness to the US dollar. Conversely, this is seen as a key factor exerting downward pressure on the US dollar Swiss franc currency pair.

At the same time, due to concerns about the US economic recession and the escalation of the trade war, the initial reaction of the market to US President Trump's decision last week to suspend comprehensive equivalent tariffs for 90 days was brief. In addition, Trump's rapid shift in stance on trade tariffs has intensified uncertainty and dampened investor sentiment. This is beneficial for the safe haven currency Swiss franc and contributes to the tone of the US dollar Swiss franc currency pair.

The above fundamental background indicates that the path with the least resistance to spot prices is still downward, and supports the prospect of continuing a three-month downward trend from the year to date high reached in January. However, traders may choose to wait for Federal Reserve Chairman Powell's appearance in the market later to obtain clues about the path of interest rate cuts. Meanwhile, the retail sales data in the United States may affect the currency pairs of the US dollar and the Swiss franc.