The EUR/CHF currency pair traded just above a fresh two-week low of 0.9511 on Tuesday, as uncertainty regarding the upcoming round of US tariffs continued to underpin safe haven currencies such as the Franc, while data showed Germany’s business climate had improved in March.

The Trump administration’s reciprocal tariffs are set to take effect on April 2nd, which many believe may stoke inflation and hinder economic growth.

Although US President Trump said yesterday that automobile tariffs were coming soon, he also indicated the reciprocal tariffs might be less severe than feared. Markets, however, remained on edge.

At the same time, the latest data by the Ifo Institute showed business morale in Germany had been the highest since July 2024 in March. The Ifo Business Climate gauge came in at a reading of 86.7 in March, up from 85.3 in February. The latest result was in line with market consensus.

The data came after Germany’s parliament approved a substantial spending package for defense and infrastructure projects – a crucial step towards revitalizing the German economy.

The European Central Bank’s monetary policy will also be closely monitored. The ECB is widely expected to implement another interest rate cut in April, which could potentially mount pressure on the Euro. Still, last week’s statements by ECB President Christine Lagarde suggested that the impact of US trade policies on inflation would be temporary.

Meanwhile, the Swiss National Bank lowered its policy rate by 25 basis points to 0.25% last week, as it cited low inflationary pressures and “heightened downside risks” to inflation.

The EUR/CHF currency pair was last little changed on the day to trade at 0.9524.