Snapshot: USD/CHF trades at 0.7904, up 0.64% today, driven by the SNB’s active easing stance. Schlegel’s recent comments did not rule out a return to negative rates if disinflation persists, reinforcing the dovish outlook. Today, watch for the 10:00 ET release of US CB Consumer Confidence.
- CHF strength remains a key concern for the SNB, keeping FX intervention optionality alive.
- Risk sentiment, as reflected in S&P 500 futures trading down -0.58%, could weigh on CHF.
Bias into NY: Expect further USD/CHF upside towards 0.7950 as the market prices in continued SNB easing, amplified by the wide US-CH 10Y yield spread of +393bp.