USD/CHF Slips as Trade War Fears Fuel Franc Demand

Weekend headlines pointing to an all-out trade war between Washington and Ottawa have reignited demand for traditional safe havens, and the Swiss franc is once again the primary beneficiary. USD/CHF opened the new session on the back foot as futures markets digested the prospect of tariff retaliation between two of North America's largest trading partners.

Flows into defensive currencies tend to accelerate when trade policy uncertainty spikes, and the franc's historical role as a haven asset is reasserting itself. Equity futures remained largely flat overnight, but currency desks are already positioning for wider volatility as the standoff develops.

Unless there's a swift de-escalation, dealers expect continued franc bids to cap any dollar rebound attempts this week, keeping USD/CHF vulnerable to further downside pressure.