USD/CHF drops as US-Switzerland trade deal sparks Swiss franc strength

USD/CHF has emerged as the weakest major currency pair today, declining sharply as the Swiss franc strengthens on reports of an imminent US-Switzerland trade agreement. The proposed deal would significantly reduce tariffs from 39% to 15%, enhancing Switzerland's export competitiveness and boosting demand for the franc. This development has triggered sustained selling pressure in USD/CHF, with traders repositioning for potential long-term Swiss franc appreciation. The tariff reduction represents a major shift in trade relations between the two nations, potentially improving Switzerland's trade balance and supporting the CHF. Technical indicators suggest follow-through selling is likely to continue as the pair breaks below key support levels. The announcement timing coincides with broader dollar weakness, amplifying the downward momentum. Traders should monitor official confirmation of the trade deal and watch for potential intervention from the Swiss National Bank if franc strength becomes excessive.