EUR/CHF settles below 1-week high, posts weekly gain

The EUR/CHF currency pair settled below recent high of 0.9390, its strongest level since May 19th, as market players digested a flurry of European macro data.

In Germany, retail sales shrank 1.1% in April, recording the first decline in four months, against expectations of a 0.2% growth.

At the same time, easing inflation pressures in Euro Area’s largest economies prompted investors to boost their bets the European Central Bank will lower interest rates at its upcoming policy meeting and likely deliver more cuts afterwards.

In France, annual consumer inflation dropped to 0.7% in May, preliminary data showed, or the lowest rate since February 2021.

In Spain, annual CPI inflation eased to 1.9% in May, or the lowest rate since October 2024.

In Italy, annual CPI inflation eased to 1.7% in May, the lowest rate since February.

And, German annual CPI inflation remained stable at 2.1% in May, or the lowest rate since October 2024.

Investors also weighed news that a US federal appeals court issued a temporary halt to a recent tariff ban on the Trump administration’s tariff policies.

On Thursday, the Swiss Franc came under pressure after the US Court of International Trade ruled that President Donald Trump was not authorized to apply sweeping tariffs using the International Emergency Economic Powers Act without congressional approval.

The ruling eased market concerns and temporarily cleared away protectionist uncertainty, reducing demand for safe-haven assets.

Yet, on Friday, the Swiss currency regained some footing, after President Trump reignited tensions with China, arguing Beijing had violated the conditions of its trade deal with the US.

Trump’s accusations followed earlier commentary by Treasury Secretary Scott Bessent, who claimed that trade talks with China had stalled.

The EUR/CHF currency pair settled 0.16% lower at 0.9327 on Friday.

The minor Forex pair gained 0.07% for the week.