The Swiss franc may trade sideways in the near term as markets await clarity on trade relations between the U.S. and Switzerland, according to a note from Commerzbank.
Unlike other nations, Switzerland has not yet received a formal tariff warning from President Trump ahead of his planned August 1 tariff rollout. This has provided temporary relief, especially given Trump’s earlier threat in April to impose a 31% tariff on Swiss goods.
Commerzbank notes that while the franc has strengthened in recent weeks, reflecting market optimism, the risk of a 15% tariff remains—the rate Trump has suggested for countries not yet specifically targeted.
Even in the absence of a direct announcement, the bank warns that any eventual tariffs will likely weigh on Switzerland’s real economy, despite the current calm in currency markets.
This article was written by Eamonn Sheridan at investinglive.com.
