USD/CHF edges higher in favor of Trump election victory

The US Dollar was broadly stronger against major peers on Monday, as bets on a victory by Donald Trump in the coming US elections increased following an assassination attempt against the former US President.

The USD/CHF currency pair was last up 0.10% on the day to trade at 0.8954. The major Forex pair had earlier registered an intraday high of 0.8972.

Trump was shot in the ear at a rally in Pennsylvania on Saturday.

Under a possible Trump presidency, market players expect hawkish trade policy, looser regulation and an extension of corporate and personal tax cuts.

“The market reaction function to a Trump presidency has been characterized by a stronger U.S. Dollar and a steepening of the U.S. Treasuries curve, so we might observe some of that this coming week if his election odds are assessed to have further improved following this incident,” Rong Ren Goh, portfolio manager at Eastspring Investments, was quoted as saying by Reuters.

Meanwhile, in terms of macro data, producer and import prices in Switzerland were reported to have decreased at an annual rate of 1.9% in June, following a 1.8% drop in May.

June has been the 14th straight month of price decline due to sustained lower import costs.