Snapshot: USD/CHF sits at 0.7870, up 0.43% from the previous session. The Swiss Franc continues to draw strength from the SNB’s active easing stance and persistent concerns about disinflation. All eyes are on any further signals from SNB officials regarding future policy adjustments.
- Watch for a break below 0.7850 as a signal of further CHF strength.
- Risk of SNB intervention to curb CHF appreciation remains a constant possibility, particularly if the Franc strengthens too rapidly.
Bias into NY: We expect continued downward pressure on USD/CHF as the market anticipates further easing from the SNB, potentially targeting 0.7820. US 2Y yields are down slightly, but the primary driver remains the SNB’s posture.