Snapshot: USD/CHF trades at 0.7771, down 0.20% today. The SNB’s active easing posture and openness to returning to negative rates is keeping pressure on the Franc. Watch 08:30 ET US Unemployment Claims.
- Key level: Watch for a break below the day’s low of 0.7771, which could open the door for a test of recent lows.
- Risk: Risk sentiment remains fragile; a sharp risk-off move could see safe-haven flows boost the CHF.
Bias into NY: We are biased lower on USD/CHF, targeting a move towards 0.7750, as the SNB’s commitment to fighting persistent CHF strength outweighs any short-term dollar bounce. Cross-currency yield spreads favour USD, but this is secondary to the SNB’s clear easing signal.