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  • 12.02.2025 06:12
    USD/CHF holds steady above 0.9100, US CPI data in focus
    • USD/CHF flat lines around 0.9130 in Wednesday’s early European session. 
    • Fed’s Powell said the central bank is still in no rush to lower rates. 
    • The rising Middle East geopolitical tensions could boost the safe-haven flows, benefiting the Swiss Franc.

    The USD/CHF pair trades on a flat note around 0.9130 during the early European trading hours on Wednesday. Traders await further information from US President Donald Trump on potential trade tariffs. The US Consumer Price Index (CPI) inflation data will be in the spotlight later on Wednesday. Also, the Federal Reserve’s (Fed) Raphael Bostic and Christopher Waller are scheduled to speak. 

    On Tuesday, Fed Chair Jerome Powell emphasized in testimony before the Senate Banking, Housing, and Urban Affairs Committee that the US central bank does not need to be in a hurry to adjust the monetary policy. Powell added that policy is well-positioned to deal with risks and uncertainties.

     "The uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025," noted Neil Shearing, group chief economist at Capital Economics.

    The US CPI is expected to show an increase of 2.9% YoY in January versus 2.9% prior, while the Core CPI inflation is estimated to ease to 3.1% YoY in January from 3.2% in the previous reading. If the report shows a hotter-than-expected outcome, this could lift the US Dollar (USD) broadly. 

    On the Swiss front, the escalating geopolitical tensions in the Middle East could boost the Swiss Franc (CHF), a safe-haven currency. Late Tuesday, Israel's Prime Minister Benjamin Netanyahu said that the ceasefire will be over and Israel will resume “intense fighting” in Gaza if Hamas doesn’t release “our hostages” by Saturday noon. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.


     

  • 11.02.2025 06:43
    USD/CHF holds positive ground above 0.9100 ahead of Fed Chair Powell’s testimony
    • USD/CHF drifts higher to 0.9115 in Tuesday’s early European session. 
    • The threats of reciprocal tariffs and additional protectionist measures by Trump boost the US Dollar. 
    • The ongoing Middle East geopolitical tensions could boost the safe-haven currency like the CHF. 

    The USD/CHF pair trades in positive territory for the fourth consecutive day around 0.9115 on Tuesday during the early European trading hours. The threats of reciprocal tariffs and the imposition of 25% tariffs on aluminium and steel by US President Donald Trump provide some support to the US Dollar (USD). Investors will closely monitor Federal Reserve (Fed) Chair Jerome Powell’s semi-annual testimony on Tuesday. 

    Analysts believe that tariff policies by the Trump administration could be inflationary and put further pressure on the Fed to keep interest rates elevated. Markets are pricing in 36 basis points (bps) of cuts this year, down from 42 bps after an upbeat labour market report on Friday. This, in turn, underpins the Greenback against the Swiss Franc (CHF). 

    "It would not be prudent to fight this trend of US dollar strength, at least until later this year when we can have a better gauge of the breath and scope of the tariffs and the corresponding impact on the US economy," said United Overseas Bank (UOB) analysts. 

    On the other hand, global uncertainties and geopolitical tensions in the Middle East could drive safe-haven flows to the CHF. The Kremlin said on Monday that US-Russia relations were on the brink of collapse and refused to confirm whether Russian President Vladimir Putin had spoken with President Donald Trump, despite Trump saying so Sunday.

    The Swiss Franc could trade stronger in the coming months as the Swiss National Bank (SNB) is unlikely to return to negative interest rates, Commerzbank analyst Michael Pfister said in a note. The SNB might end its rate-cutting cycle with a policy rate of 0.0%, compared with 0.5% currently. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 10.02.2025 05:54
    USD/CHF holds positive ground above 0.9100 on firmer US Dollar
    • USD/CHF gains ground to near 0.9110 in Monday’s early European session. 
    • The upbeat US employment data for January supports the US Dollar. 
    • The uncertainty and ongoing Middle East geopolitical tensions could boost the safe-haven currency like the CHF. 

    The USD/CHF pair gathers strength to around 0.9110 during the early European session on Monday. The US Federal Reserve (Fed) is expected to keep interest rates hold this year after the US January employment data, supporting the Greenback. Fed's Chair Powell testifies will be the highlight on Tuesday. Later on Wednesday, US Consumer Price Index (CPI) inflation data will be in focus. 

    The US Dollar Index (DXY), which measures the USD against six other units, currently trades near 108.20, gaining 0.14% on the day. The US economy created 143K new jobs in January, missing economists' estimates of 170K jobs. However, the Unemployment Rate declined to 4.0% in January from 4.1% in December.

    Furthermore, analysts said that tariff policies by the Trump administration could be inflationary and put further pressure on the Fed to keep interest rates elevated. Markets are pricing in 36 basis points (bps) of cuts this year, down from 42 bps after an upbeat payrolls report on Friday. This, in turn, contributes to the USD’s upside. 

    The Swiss Franc (CHF) could appreciate in the coming months as the Swiss National Bank (SNB) is unlikely to return to negative interest rates, Commerzbank analyst Michael Pfister said in a note. The SNB might end its rate-cutting cycle with a policy rate of 0.0%, compared with 0.5% currently. Meanwhile, the global economic uncertainty and the ongoing geopolitical tensions in the Middle East could boost the safe-haven flows, benefiting the CHF. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 07.02.2025 06:00
    USD/CHF attracts some buyers above 0.9050, US NFP data looms
    • USD/CHF drifts higher to around 0.9060 in Friday’s early European session, adding 0.17% on the day. 
    • Investors brace for the US January employment report, which is due later on Friday. 
    • Escalating Middle East geopolitical tensions could boost the safe-haven flows, benefiting the CHF. 

    The USD/CHF pair gains traction to near 0.9060 during the early European session on Friday. The renewed US Dollar (USD) demand provides some support to the pair. Later on Friday, the US employment data for January will take center stage. 

    Despite the hawkish hold, LSEG statistics showed that markets continue to expect 46.3 basis points (bps) of Federal Reserve (Fed) rate reductions by December, with a quarter-point cut fully priced for July. The US January labor market data will be the highlight later on Friday as it might offer some hint about a US interest rate outlook. The weaker NFP report could trigger dovish Fed expectations, undermining the Greenback. On the other hand, the upside surprise outcome could affirm the Fed’s hawkish tone and could lift the USD broadly. 

    The Middle East and Europe condemn Trump’s plans to take over Gaza. On Thursday, Trump said that Israel would hand over Gaza to the United States after the fighting was over and the enclave's population was already resettled elsewhere, which he said meant no US troops would be needed on the ground. Investors will closely monitor the development of surrounding geopolitical risk in the Middle East.

    "What Trump is proposing is clearly catastrophic for Gaza, but it would also be destabilising for the countries in the region," Hugh Lovatt, a researcher at the European Council on Foreign Relations (ECFR), tells Euronews. Any sign of escalating tensions could boost the safe-haven currency like the Swiss Franc (CHF).

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 06.02.2025 22:00
    USD/CHF Price Analysis: Reclaims 0.9000 ahead of US NFP data
    • USD/CHF rebounds to 0.9048, gaining momentum after forming a "tweezers bottom" pattern at critical support levels.
    • Upcoming Nonfarm Payroll figures heighten market focus, following unexpected rise in unemployment claims.
    • Technical outlook suggests potential range trading, with a critical resistance at 0.9100 and support near 0.8998.

    The USD/CHF reversed course and trimmed some of its weekly losses, posting gains of over 0.36%. At the time of writing, it was exchanged at 0.9048.

    US jobs data showed that more people than expected applied for unemployment benefits, which could be linked to the Los Angeles wildfires and the weather. In the meantime, traders braced for the release of US Nonfarm Payroll figures on Friday.

    USD/CHF Price Analysis: Technical outlook

    The USD/CHF reversed its course, forming a “tweezers bottom” chart pattern. The pair found strong support at 0.8998 at the 50-day Simple Moving Average (SMA). If buyers achieve a daily close above 0.9000, look for some range-bound trading within the 0.9040 – 0.9100 area. A breach of the top of the range will expose the February 3 high at 0.9195.

    Conversely, if the USD/CHF price closes below the 50-day SMA daily, further downside is seen, as the next support would be the November 22 daily high at 0.8957, followed by 0.8900.

    USD/CHF Price Chart – Daily

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 06.02.2025 05:50
    USD/CHF rebounds from 0.9000 mark, over one-week low amid modest USD strength
    • USD/CHF edges higher and snaps a three-day losing streak to over a one-week low.
    • A modest USD strength offers some support to the major amid a positive risk tone.
    • Fed rate cut bets might cap the USD and warrant caution for aggressive bullish traders.

    The USD/CHF pair defends the 0.9000 psychological mark and attracts some dip-buyers during the Asian session on Thursday, snapping a three-day losing streak to over a one-week low touched the previous day. Spot prices currently trade around the 0.9030 area, up over 0.15% for the day, though the fundamental backdrop warrants caution before confirming that this week's sharp pullback from the 0.9200 neighborhood has run its course. 

    The US Dollar (USD) stages a modest recovery following the recent slump to its lowest level in over a week. Apart from this, a generally positive tone around the equity markets is seen undermining the safe-haven Swiss Franc (CHF) and turns out to be another factor lending some support to the USD/CHF pair. Any meaningful USD appreciation, however, seems elusive in the wake of bets for further policy easing by the Federal Reserve (Fed). 

    In fact, the markets are pricing in the possibility that the US central bank will lower borrowing costs twice by the end of this year. The bets were reaffirmed by the disappointing release of the US ISM Services PMI, which declined to 52.8 in January. This, to a larger extent, overshadowed the ADP report showing that private-sector employment increased by 183K in January compared to the previous month's upwardly revised reading of 176 K. 

    Apart from this, concerns about the escalating US-China trade war and the potential economic fallout from US President Donald Trump's trade tariffs could keep a lid on the market optimism. This, in turn, might hold back traders from placing aggressive bearish bets around the safe-haven CHF and cap the USD/CHF pair. Hence, it will be prudent to wait for strong follow-through buying before positioning for any further gains.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 05.02.2025 09:13
    USD/CHF holds losses below 0.9050 as US Dollar undergoes a downward correction
    • USD/CHF loses ground as the US Dollar weakens for the third consecutive session on Wednesday.
    • Safe-haven demand for the Swiss Franc rises due to escalating US-China trade tensions.
    • Traders await Thursday’s Swiss Unemployment Rate to gain further insight into the labor market.

    USD/CHF continues its decline for the second straight day, trading near 0.9030 during European hours on Wednesday. This downturn is primarily driven by a weaker US Dollar (USD), which is undergoing a technical correction.

    The US Dollar Index (DXY), which tracks the USD against six major currencies, remains under pressure for the third consecutive session, hovering around 107.70 at the time of writing. Meanwhile, market participants await Friday’s US Nonfarm Payrolls (NFP) data, which could influence the Federal Reserve’s (Fed) monetary policy stance.

    Adding to the USD’s weakness, US President Donald Trump has agreed to a 30-day suspension of the proposed 25% tariffs on Canadian and Mexican imports. This decision follows commitments from Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum to enhance border security in response to concerns over illegal immigration and drug trafficking.

    Further weighing on the USD/CHF pair, safe-haven demand for the Swiss Franc (CHF) could have increased due to escalating US-China trade tensions. In retaliation for the new 10% US tariff imposed on Tuesday, China has implemented a 15% tariff on US coal and liquefied natural gas (LNG) imports, along with an additional 10% tariff on crude Oil, farm equipment, and certain automobiles.

    On the Swiss economic front, the SVME Purchasing Managers' Index (PMI) inched up to 47.5 in January from 47.0 in December, though it fell short of market expectations of 49.0. The rise was tempered by declines in order backlogs and purchasing inventories, data showed on Monday. Investors now turn their attention to Switzerland’s Unemployment Rate, set to be released by the State Secretariat for Economic Affairs (SECO) on Thursday, which will provide further insight into the labor market.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 04.02.2025 06:14
    USD/CHF posts modest gains above 0.9100, China hits back after US tariffs take effect
    • USD/CHF holds positive ground around 0.9125 in Tuesday’s early European session. 
    • China announced a levy of additional tariffs of up to 15% on select US imports starting February 10. 
    • Swiss Real Retail Sales rose 2.6% YoY in December. 

    The USD/CHF pair trades with mild gains around 0.9125 during the early European session on Tuesday. The markets might turn cautious later in the day as traders await the developments surrounding tariff negotiations with China.

    China's finance ministry on Tuesday announced a package of tariffs on a range of US products, including crude oil, farm equipment, and some autos, in an immediate response to a 10% tariff on Chinese imports announced by US President Donald Trump that went into effect at 05:01 GMT on Tuesday. 

    The development surrounding trade tariff policies will be closely monitored. Economists said the tariffs are widely expected to push up U.S. inflation, supporting the USD by keeping US interest rates higher for longer.

    On the Swiss front, the country’s Real Retail Sales climbed by 2.6% YoY in December, compared to 1.4% (revised from 0.8%) prior, according to the Federal Statistical Office on Friday. This reading came in hotter than the 0.6% expected.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 03.02.2025 20:33
    USD/CHF Price Analysis: Clings to gains as trade tensions begin to fade
    • USD/CHF gains 0.19% to 0.9126, retreating from three-week peak as trade negotiations show promise.
    • Technical analysis suggests bullish trend with potential to target 0.9200 if support at 0.9100 holds.
    • Downside risks loom if pair drops below 0.9100, with possible retracement to 0.8990 SMA level.

    The USD/CHF trims some gains after reaching a three-week high of 0.9195. Risk appetite improves due to a delay in the US applying tariffs in Mexico, an indication that Washington is open to negotiating trade terms. At the time of writing, the pair trades at 0.9126, up 0.19%.

    USD/CHF Price Analysis: Technical outlook

    The USD/CHF is in a correction mode on an intraday basis, but the overall trend is upward, as depicted in the daily chart. However, bulls need to keep prices above 0.9100 on a daily basis so they can challenge the 0.9200 figure in the near term.

    Momentum favors further upside, as depicted by the Relative Strength Index (RSI). Therefore, if USD/CHF advances past 0.9200, the following key resistance would be the April 2024 high at 0.9224 before challenging 0.9300.

    Nevertheless, if sellers push the USD/CHF exchange rate below 0.9100, this could pave the way for a pullback towards the 50-day Simple Moving Average (SMA) at 0.8990. A breach of the latter will expose a November 2024 swing low of 0.8956.

    USD/CHF Price Chart – Daily

    Swiss Franc PRICE Today

    The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the US Dollar.

      USD EUR GBP JPY CAD AUD NZD CHF
    USD   0.65% -0.07% -0.19% -0.91% 0.39% -0.04% -0.40%
    EUR -0.65%   -0.32% 0.48% -0.26% 0.20% 0.61% 0.28%
    GBP 0.07% 0.32%   -0.31% 0.06% 0.53% 0.93% 0.61%
    JPY 0.19% -0.48% 0.31%   -0.72% 0.73% 1.08% 0.46%
    CAD 0.91% 0.26% -0.06% 0.72%   0.21% 0.87% 0.55%
    AUD -0.39% -0.20% -0.53% -0.73% -0.21%   0.40% 0.05%
    NZD 0.04% -0.61% -0.93% -1.08% -0.87% -0.40%   -0.32%
    CHF 0.40% -0.28% -0.61% -0.46% -0.55% -0.05% 0.32%  

    The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

     

  • 03.02.2025 06:53
    USD/CHF gains momentum above 0.9150 as Trump's tariff war escalates
    • USD/CHF extends its upside to around 0.9165 in Monday’s early European session.
    • USD strengthens on Trump's tariffs.
    • Swiss Real Retail Sales rose by 2.6% YoY in December vs. 0.6% expected.

    The USD/CHF pair extends the rally to near 0.9165 during the early European trading hours on Monday. The US Dollar (USD) jumps after US President Donald Trump's sweeping tariffs kicked off a trade war.

    The Greenback gains up to 0.60% against the Swiss franc (CHF), reaching a peak not seen since May 2024. The move comes after Trump put 25% tariffs on imports from Mexico and Canada on Saturday, as well as a fresh 10% levy on Chinese products.

    However, the Wall Street Journal reported on Monday, citing unnamed sources, that the Chinese government is preparing an opening bid to try to head off greater tariff increases and technology restrictions from the Trump administration, indicating that China is keen to begin trade discussions. Investors will closely monitor the development surrounding trade tariff policies. Any sign of a renewed trade war between the US and trading partners could boost the US Dollar against its rivals.

    Data released by the US Bureau of Economic Analysis (BEA) reported on Friday showed that the Personal Consumption Expenditures (PCE) Price Index rose 2.6% YoY in December versus 2.4% in November. This figure came in line with the market consensus. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, climbed 2.8% YoY in December, matching November's reading and the estimation.

    This US inflation report suggested that the US Federal Reserve (Fed) would probably be in no hurry to resume cutting interest rates, supporting the USD. Investors pared expectations of rate reductions from the Fed, pricing in 54% odds of two cuts this year and 44% for just one in the wake of the tariff news.

    On the Swiss front, the country’s Real Retail Sales rose by 2.6% YoY in December versus 1.4% (revised from 0.8%) prior, according to the Federal Statistical Office on Friday. This reading came in hotter than the 0.6% expected.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 31.01.2025 06:00
    USD/CHF holds positive ground near 0.9100, eyes on US PCE release
    • USD/CHF posts modest gains to around 0.9100 in Friday’s early European session. 
    • The US economy grew at a slower-than-expected pace in Q4. 
    • The safe-haven flows could support the Swiss Franc. 

    The USD/CHF pair trades with mild gains to near 0.9100 during the early European session on Friday. The hawkish hold from the US Federal Reserve (Fed) provides some support to the US Dollar (USD). Investors will take more cues from the US December Personal Consumption Expenditures (PCE) inflation data, which is due later on Friday. Also, Fed Governor Michelle Bowman is set to speak. 

    The US central bank left interest rates unchanged Wednesday. Fed Chair Jerome Powell said in a press conference that the US economy remains strong, while inflation remains somewhat elevated. Therefore, the central bank doesn’t need to be in a hurry to adjust its policy stance. Following the January Fed meeting, the markets see less than a 50% odds that the Fed will cut rates before its June meeting, per the CME FedWatch Tool. This, in turn, lift the Greenback against the Swiss Franc (CHF).

    Nonetheless, the downbeat US Gross Domestic Product (GDP) data undermines the USD. The Bureau of Economic Analysis's advance estimate of fourth quarter US GDP revealed the US economy expanded at an annualized pace of 2.3% in Q4, below the 2.6% growth estimated. The reading came in weaker than the 3.1% growth seen in Q3. 

    A ceasefire between Israel and Hamas in Gaza went into effect a week ago. Meanwhile, Lebanon the November ceasefire in Lebanon is holding despite ongoing Israeli airstrikes on Hezbollah targets. Investors will closely monitor the development surrounding geopolitical risks in the Middle East. Any signs of escalating geopolitical tensions in the region could boost the safe-haven flows, benefitting the Swiss Franc. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 30.01.2025 22:55
    USD/CHF Price Forecast: Soars towards 0.9090 on Trump’s trade rhetoric
    • USD/CHF approaches 0.9100, gaining 0.33% amid U.S. trade tensions with neighbors.
    • Technical rebound as USD/CHF recaptures 0.9000 after dipping below 50-day SMA.
    • Potential rise toward 0.9152 if bulls overcome the 0.9100 resistance, with 0.9200 in sight.

    The USD/CHF rallied for the third consecutive day, edged towards the 0.9100 figure, and posted gains of over 0.33%. US President Donald Trump's tariff threats to Canada and Mexico bolstered the Greenback, which recovered after the US Dollar Index (DXY) dived to a three-day low of 107.50.

    USD/CHF Price Forecast: Technical outlook

    The USD/CHF uptrend remains intact, although the pair briefly edged below the 50-day Simple Moving Average (SMA) of 0.8963 on Tuesday before reclaiming the 0.9000 figure.

    Momentum turned bullish after the Relative Strength Index (RSI) crossed above its neutral line, an indication that bulls are in charge.

    Therefore, further upside in the USD/CHF is seen. Once bulls reclaim 0.9100, a rally toward the January 17 swing high of 0.9152 is on the cards. On further strength, the next resistance would be the 0.9200 mark.

    Conversely, sellers must clear the 50-day SMA at 0.8984, followed by the January 27 swing low of 0.8964.

    USD/CHF Price Chart – Daily

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 30.01.2025 05:47
    USD/CHF remains steady near 0.9050 ahead of Swiss Trade Balance data
    • USD/CHF moves little as traders await economic releases seeking fresh impetus.
    • US Gross Domestic Product Annualized (Q4) could report a 2.6% growth, down from the previous 3.1%.
    • Swiss Trade Balance and the KOF Leading Indicator are scheduled to be released on Thursday.

    USD/CHF steadies after two consecutive days of gains, trading around 0.9070 during the Asian session on Thursday. This decline is mainly attributed to a weaker US Dollar (USD). The US Dollar Index (DXY), which tracks the Greenback against six major currencies, hovers slightly below the 108.00 mark at the time of writing.

    Traders are awaiting the release of the US fourth-quarter Gross Domestic Product (GDP) growth data, scheduled for Thursday. The market consensus expects a slowdown in annualized GDP growth, with a forecast of 2.6%, down from the previous 3.1%. Inflationary concerns persist, with the Q4 GDP Price Index expected to rise to 2.5%, up from 1.9%.

    The downside for USD/CHF may be limited, as the USD could strengthen following the Federal Reserve's (Fed) cautious approach to monetary policy. The Fed maintained its overnight borrowing rate at 4.25%-4.50% during its January meeting on Wednesday, as widely anticipated. This decision follows three consecutive rate cuts since September 2024, totaling a one-percentage-point reduction.

    The Fed's hawkish stance was further reinforced by its decision to remove language suggesting confidence in inflation reaching its 2% target. Fed Chair Jerome Powell also emphasized in the press conference that the central bank would require "real progress on inflation or some weakness in the labor market" before considering any policy changes.

    In Switzerland, the ZEW Survey Expectations for January increased to 17.7, reversing the previous month's decline to -20, according to data released on Wednesday. Traders are also awaiting the Swiss Trade Balance for December and the KOF Leading Indicator for January, both scheduled for release on Thursday.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 29.01.2025 07:08
    USD/CHF holds below 0.9050 ahead of Fed rate decision
    • USD/CHF softens to around 0.9035 in Wednesday’s early European session. 
    • Investors brace for the Fed rate decision on Wednesday, with no change in rate expected. 
    • The Swiss Franc jumps as investors seek safety. 

    The USD/CHF pair loses ground to near 0.9035 on Wednesday during the early European trading hours. The weaker US Dollar (USD) and a decline in US Treasury yields drag the pair lower. The markets might turn cautious ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday.

    The Fed is widely expected to hold its benchmark rate unchanged at its January meeting on Wednesday. The strong US fundamental story, elevated inflation, and a more hawkish Fed continue to favor the Greenback in the near term. There is no updated Summary of Economic Projections (SEP), but investors will closely watch Fed Chair Jerome Powell’s press conference as it might offer some hints about the monetary policy outlook.

    On the other hand, the Swiss Franc (CHF) strengthens as investors rush into safe-haven assets. The uncertainty surrounding US President Donald Trump's tariff policies and the ongoing Russia and Ukraine conflict could lift the CHF against the USD. Officials and media outlets reported on Wednesday that Ukrainian drones targeted oil and power facilities in western parts of Russia. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 28.01.2025 21:44
    USD/CHF Price Forecast: Rebound above 0.9000 amid signs of potential gains
    • USD/CHF rebounds from 50-day SMA and support trendline, indicating potential reversal.
    • For sustained recovery, pair needs to break January 23 high of 0.9108, targeting mid-January peak at 0.9153.
    • A drop below 0.9000 could trigger further declines to trendline support at 0.8990 and 50-day SMA at 0.8982.

    The USD/CHF recovers some ground after posting 0.45% losses on Monday amid broad US Dollar weakness. Although the pair tested the confluence of the 50-day Simple Moving Average (SMA) and a support trendline drawn from October 2024’s lows touched at 0.8982, buyers moved in and pushed spot prices above the 0.9000 figure, gaining over 0.26% on Tuesday.

    USD/CHF Price Forecast: Technical outlook

    The daily chart suggests the USD/CHF could be forming a reversal pattern, that it could open the door for further upside. However key resistance levels must be surpassed, if bulls are going to test year-to-date (YTD) highs reached January 13 at 0.9201.

    If USD/CHF clears the January 23 daily high at 0.9108, it could open the door to test the January 17 cycle high at 0.9153. On the other hand, if sellers stepped in and achieve a daily close below 0.9000, the first support would be the trendline drawn from last October’s low passing near 0.8990 – 0.9000. A breach of the latter will expose the 50-day SMA at 0.8982, followed by the November 22 swing high at 0.8957.

    USD/CHF Price Chart – Daily

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 28.01.2025 13:31
    USD/CHF Price Forecast: Bounces back amid fears of widening Fed-SNB policy divergence
    • USD/CHF recovers strongly from 0.8965 as investors expect the Fed-SNB policy divergence to widen further.
    • The Fed is expected to keep interest rates steady in the policy announcement on Wednesday.
    • The safe-haven demand of the US Dollar increases in a risk-aversion environment.

    The USD/CHF pair rebounds strongly, slightly above the key hurdle of 0.9050 in Tuesday’s North American trading hours after a two-week-long correction to near 0.8965. The Swiss Franc pair strengthens as the US Dollar (USD) resumes its upside journey in a jittery market environment.

    The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, soars to near 108.00. Investors rushed to the US Dollar as global technology stocks melted down on the assumption that Chinese DeepSeek’s low-cost Artificial Intelligence (AI) model would reduce the technology gap between China and the United States (US).

    Meanwhile, investors have underpinned the US Dollar against the Swiss Franc (CHF) amid expectations that the Federal Reserve (Fed) will announce a pause in the current policy-easing cycle in the policy announcement on Wednesday. On the contrary, the Swiss National Bank (SNB) could push its borrowing rates into the negative territory to avoid growing risks of inflation undershooting the central bank’s range of 0%-2%. This would widen the policy divergence between the Fed and the SNB.

    In the Fed’s monetary policy announcement, investors will look for cues about how long the central bank will keep interest rates steady.

    USD/CHF is on track to revisit its 15-month high, around 0.9200. The outlook of the Swiss Franc pair remains firm as the 20-week Exponential Moving Average (EMA) near 0.8900 is sloping higher.

    The 14-week Relative Strength Index (RSI) oscillates in the bullish range of 60.00-80.00, suggesting a strong upside momentum.

    For a fresh upside toward the round-level resistance of 0.9300 and the 16 March 2023 high of 0.9342, the asset needs to break decisively above the October 2023 high of 0.9244.

    On the flip side, a downside move below the psychological support of 0.9000 would drag the asset towards the November 22 high of 0.8958, followed by the December 16 low of 0.8900.

    USD/CHF weekly chart

    US Dollar FAQs

    The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

    The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

    In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

    Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

     

  • 28.01.2025 03:08
    USD/CHF rises to near 0.9050 as US Dollar advances due to tariff threats from Trump
    • USD/CHF appreciates as Trump announced plans to impose tariffs on imports of multiple products.
    • Trump stated that he "wants tariffs 'much bigger' than 2.5%," the rate proposed by Treasury Secretary Scott Bessent.
    • SNB’s Schlegel said that while the central bank does not support negative interest rates, it cannot completely rule them out.

    USD/CHF recovers its recent losses from the previous two sessions, trading around 0.9050 during the Asian hours on Tuesday. The upside of the pair could be attributed to the improved US Dollar (USD) following tariff threats made by US President Donald Trump.

    Trump announced plans on Monday evening to impose tariffs on imports of computer chips, pharmaceuticals, steel, aluminum, and copper. The goal is to shift production to the United States (US) and bolster domestic manufacturing.

    Additionally, Scott Bessent, the Treasury Secretary under Trump, stated that he aims to introduce new universal tariffs on US imports, starting at 2.5%. These tariffs could rise to as much as 20%, reflecting Trump’s aggressive stance on trade policies, consistent with his campaign rhetoric last year.

    However, President Trump told reporters aboard Air Force One early Tuesday that he “wants tariffs ‘much bigger’ than 2.5%,” as proposed by Treasury Secretary Scott Bessent. However, Trump noted that he has not yet decided on the specific tariff levels.

    The US Dollar gained strength amid uncertainty regarding the impact of Trump's trade and immigration policies. This backdrop may encourage the Federal Reserve (Fed) to maintain a cautious stance at Wednesday’s policy decision.

    The USD/CHF pair’s upside potential is bolstered by the weaker Swiss Franc (CHF) amid ultra-dovish monetary policy guidance from the Swiss National Bank (SNB). Swiss National Bank (SNB) Chairman Martin Schlegel, in an interview on Monday, stated that while the Bank does not support negative interest rates, it cannot entirely dismiss the possibility. Schlegel made these remarks during a conversation with broadcaster SRF.

    In recent weeks, Schlegel has repeatedly highlighted the potential for negative rates, especially as Swiss inflation dropped to 0.6% in December, sparking concerns about deflation.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 27.01.2025 07:07
    USD/CHF drifts higher above 0.9050 on tariff worries after Trump’s Colombian threat
    • USD/CHF gains traction to around 0.9065 in Monday’s early European session. 
    • A Trump threat of tariffs on Colombia lifts the USD. 
    • SNB’s Schlegel said it still has room to cut rates again and even take rates below 0% if inflation falls too far. 

    The USD/CHF pair trades in positive territory near 0.9065 during the early European session. The US Dollar (USD) edges higher as traders assess the impact of US President Donald Trump's tariff plans at the start of a week. On Wednesday, the US Federal Reserve (Fed) interest rate decision will be in the spotlight.

    US President Donald Trump on Sunday imposed sweeping retaliatory measures on Colombia, including tariffs and sanctions, after the South American country refused to allow two military planes carrying deported migrants to land. However, the White House said on Monday that Colombia had agreed to accept military aircraft carrying deported migrants. The prospect of high tariffs on goods from countries including China, Canada, Mexico, and the Eurozone has fueled concerns about inflation, boosting US Treasury bond yields and the Greenback. 

    On the Swiss front, the ultra-dovish monetary policy guidance from the Swiss National Bank (SNB) could weigh on the Swiss Franc (CHF) and act as a tailwind for USD/CHF. The SNB Chairman Martin Schlegel said at the World Economic Forum (WEF) in Davos that the SNB “doesn’t like negative interest rates” but if we have to do it, “we will.” Meanwhile, any signs of escalating geopolitical risks in the Middle East and Russia-Ukraine conflicts could boost the safe-haven flows, benefitting the CHF. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.



     

     

  • 24.01.2025 06:44
    USD/CHF remains on the defensive below 0.9050, US PMI data in focus
    • USD/CHF remains under selling pressure around 0.9045 in Friday’s early European session, down 0.23% on the day. 
    • Trump's rate cut calls undermine the USD against the CHF. 
    • Easing Middle East geopolitical tensions might cap the upside for the Swiss Franc.

    The USD/CHF pair remains on the defensive around 0.9045 during the early European session on Friday, pressured by the weaker US Dollar (USD) broadly. Traders will closely monitor the flash US S&P Purchasing Managers Index (PMI) for January, which is due later on Friday. 

    During a virtual address to the World Economic Forum in Davos, Switzerland, US President Donald Trump on Thursday called for a drop in interest rates after asking for a reduction of oil prices set by a group of nations known as OPEC, which includes Saudi Arabia. "With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world," said Trump. 

    The Greenback remains weak following Trump’s remarks. Market players await more cues from the US economic data and further clarity on tariff announcements. The US Federal Reserve (Fed) is scheduled for its next decision on interest rates next week, which is widely expected to hold interest rates steady at the current level of between 4.25% and 4.5%, according to the CME FedWatch Tool. 

    Although Trump tariff threats would have only a limited impact on Swiss inflation, easing geopolitical tensions in the Middle East after Israel and Hamas agreed to a ceasefire deal might cap the upside for the Swiss Franc (CHF), a safe-haven currency. However, any signs of renewed geopolitical risks or rising global uncertainties could boost the CHF against the USD. 

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

  • 23.01.2025 05:41
    USD/CHF consolidates around 0.9060-0.9065 area, above two-week low set on Wednesday
    • USD/CHF lacks any firm intraday direction, though it manages to hold above a two-week low.
    • A further recovery in the US bond yields underpins the USD and lends some support to the pair.
    • A positive risk tone weighs on the safe-haven CHF and supports prospects for further gains.

    The USD/CHF pair struggles to capitalize on the previous day's modest bounce from the 0.9035-0.9030 area, or over a two-week low and oscillates in a narrow range during the Asian session on Thursday. Spot prices currently trade around the 0.9060 region, nearly unchanged for the day amid subdued US Dollar (USD) price action.

    The USD Index (DXY), which tracks the Greenback against a basket of currencies, struggles to capitalize on the overnight bounce from the monthly low amid bets that the Federal Reserve (Fed) will cut interest rates twice this year. That said, an uptick in the US Treasury bond yields acts as a tailwind for the buck, which, in turn, is seen lending support to the USD/CHF pair. 

    Meanwhile, Swiss National Bank (SNB) Chairman Martin Schlegel's ultra-dovish comments, opening doors for negative interest rates, might continue to weigh on the Swiss Franc. Apart from this, the underlying bullish tone around the equity markets could undermine the safe-haven CHF and further contribute to limiting any meaningful downside for the USD/CHF pair.

    Traders also seem reluctant and might opt to wait on the sidelines ahead of US President Donald Trump's speech at the World Economic Forum for more concrete announcements on tariffs. This, in turn, could infuse volatility in the global financial markets and influence the USD price dynamics, which, in turn, should provide some meaningful impetus to the USD/CHF pair. 

    Traders on Thursday will further take cues from the release of the US Weekly Initial Jobless Claims data, due later during the early North American session. Nevertheless, the aforementioned fundamental backdrop warrants caution before positioning for an extension of the recent pullback from the 0.9200 mark, or the highest level since May 2024 touched earlier this month.

    Swiss Franc FAQs

    The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

    The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

    The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

    Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

    As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

     

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