CFTC: Swiss franc posts net short position of -23,853 contracts in week of Jul 01 2025

CFTC: Swiss franc posts net short position of -23,853 contracts in week of Jul 01 2025

The Swiss franc (CHF) posted a net short position of -23,853 contracts in the week of July 1, 2025, according to data from the Commodity Futures Trading Commission (CFTC). This development comes amidst growing concerns over U.S. fiscal policy and the potential impact on global financial markets.

The Swiss franc, often considered a safe-haven currency, has been under pressure as the U.S. Senate passed President Donald Trump's tax and spending bill. The bill, which adds $3.3 trillion to the national debt over the next decade, has raised concerns among investors about the sustainability of U.S. debt [1].

The U.S. dollar, which has been weakening against major currencies including the yen and the Swiss franc, may see a temporary bounce due to the recent job openings data showing a better-than-expected increase in labor market demand. This data suggests that the Federal Reserve will likely take its time to cut interest rates, potentially boosting the dollar's value [1].

Technical indicators such as the Hammer candle on the USD/CHF daily chart also suggest a potential exhaustion of the prevailing downtrend, with the Relative Strength Index (RSI) being deeply oversold at 26. This pattern indicates a potential bullish reversal or short-term relief bounce, with the USD/CHF trading above 0.7900 at the time of writing [2].

The Swiss franc's value is driven by various factors, including economic health, central bank policies, and the broader market sentiment. Given the uncertainty surrounding U.S. fiscal policy, the Swiss franc may continue to be influenced by geopolitical risks and macroeconomic data releases in Switzerland and the Eurozone [2].

Investors should closely monitor the developments in U.S. fiscal policy and the Federal Reserve's monetary policy stance to gauge the potential impact on the Swiss franc and other global currencies.

References:
[1] https://ca.finance.yahoo.com/news/dollar-feeble-trumps-tax-bill-014415999.html
[2] https://www.fxstreet.com/news/usd-chf-steadies-trumps-tax-bill-clears-senate-while-hammer-candle-signals-possible-reversal-202507011931