The USD/CHF pair rebounds to 0.8985 in early European trading on Friday as the US Dollar (USD) finds modest support ahead of key economic data and Federal Reserve (Fed) speeches. Investors will closely watch the preliminary US S&P Global PMI figures and comments from Fed officials Mary Daly and Philip Jefferson for further clues on monetary policy.

Minutes from the Fed’s January meeting highlighted policymakers’ concerns about inflation and the potential impact of Trump’s proposed tariffs. While Fed Chair Jerome Powell reiterated that the central bank is in no rush to cut rates, market expectations now suggest only one rate reduction in 2025, possibly none. A delay in rate cuts could provide further upside for the USD against the Swiss Franc (CHF).

Meanwhile, geopolitical uncertainty remains high. Trump announced new tariffs on lumber and forest products and previously targeted goods like cars, semiconductors, and pharmaceuticals. Simultaneously, hopes for a Russia-Ukraine ceasefire have diminished amid intensified Ukrainian drone attacks on Russian oil infrastructure. These factors may support the demand for a safe haven for CHF, potentially capping USD/CHF’s upside.

Trade Idea:
A sustained move above 0.9000 could push USD/CHF toward 0.9050. However, failure to hold above 0.8980 may trigger a retest of 0.8940 support. A stop-loss can be set at 0.8920.