The GBP/CHF currency pair settled above a fresh 34-week low of 1.1019 and recorded its worst weekly performance since late July 2024, as the Pound was hammered after China’s retaliatory move to US tariffs.

The UK 10-year gilt yield fell to lows not seen since December 12th, at 4.4% on Friday, as fears of a global economic slowdown mounted amid the intensifying trade war.

China announced on Friday it planned to implement 34% tariffs on all goods imported from the US, with the deadline set for April 10th. The move came as a response to the Trump administration’s 54% duties imposed on Chinese imports.

This fueled concerns over an escalating trade conflict between the world’s first two largest economies and triggered broad risk aversion, supporting traditional safe haven assets such as the Swiss Franc.

“The market, of course, is extremely surprised by China’s aggressive retaliatory actions. I don’t think many investors were anticipating such a sudden and large response in terms of the percentages of the tariffs back at the United States, so that certainly has set the market, which has already been wobbly, to be even more uncertain,” Peter Andersen, founder of Andersen Capital Management, was quoted as saying by Reuters.

UK will also face the US’ 10% baseline tariff. As a result, market players have increased their bets on further rate cuts by the Bank of England. Markets are now pricing in about 70 basis points of BoE rate cuts by December.

Meanwhile, on the data front, Switzerland’s jobless rate has remained stable at 2.9% in March.

The GBP/CHF currency pair settled 1.63% lower at 1.1066 on Friday.

The minor Forex pair lost 2.78% for the week.