Snapshot: USD/CHF trades at 0.7786, up 0.14% on the session, as the SNB’s recent rate cut and stated readiness to intervene in FX markets continues to weigh on the Swiss Franc. No major Swiss macro prints are due today.
- Watch for SNB comments reinforcing their easing bias; further hints of negative rate optionality would pressure the Swissy.
- Global risk sentiment, as reflected in US equity futures, could provide a tailwind if the bid persists into the NY session.
Bias into NY: We see continued upside for USD/CHF towards 0.7800 given the SNB’s proactive approach to combatting disinflation and CHF strength. A stronger dollar, supported by slightly higher US yields, may amplify the move.