USD/CHF climbs to near 0.8150 as Trump hits Switzerland with 39% tariff rate

• USD/CHF drifts higher to around 0.8145 in Friday’s early Asian session, up 0.22% on the day. 
• Trump hit Switzerland with a 39% tariff rate. 
• Traders will closely watch the US July employment report, which is due later on Friday.  

The USD/CHF pair gathers strength to near 0.8145 during the early Asian session on Friday. The Swiss Franc (CHF) weakens against the US Dollar (USD) after the US President Donald Trump set a 39% tariff on goods from Switzerland. All eyes will be on the US July employment report, which will be released later on Friday. 

The White House stated late Thursday that Trump will keep minimum global tariff rates at 10%, resisting prior suggestions he could raise the floor to 15% or higher. However, Trump has hammered Switzerland with a 39% tariff rate. The CHF is underperforming G-10 peers after a surprisingly high tariff rate was imposed on Switzerland.

The US Federal Reserve (Fed) decided to hold its benchmark federal funds rate in a range of 4.25%-4.5% at its July meeting on Wednesday, as widely expected. Fed Chair Jerome Powell stated during the press conferne that the US central bank has “made no decisions” about a potential policy change in September and it may take a bit to assess the effect of tariffs on consumer prices.

Traders will closely monitor the release of US employment data for July later on Friday. The US economy is expected to add 110K jobs in July, while the Unemployment Rate is projected to rise to 4.2% from 4.1% during the same period. 

Additionally, the US Average Hourly Earnings is estimated to increase to 3.8% YoY in July from 3.7% in the previous reading. If the reports show weaker-than-expected outcomes, this might weigh on the USD and act as a headwind for the pair.