Snapshot: USDCHF is little changed this morning despite broader USD strength; the pair is hovering around 0.78. The dominant driver remains the SNB’s active easing posture, with the potential for further rate cuts or FX intervention. Focus remains on Schlegel’s explicit nod to FX intervention readiness.
- Watch for any hawkish repricing in US yields, with US 2Y at 4.08%, which could pressure USDCHF lower.
- Geopolitical headlines regarding Iran-US relations may also impact safe-haven flows, influencing the Swiss Franc.
Bias into NY: Sideways. The SNB’s commitment to price stability and readiness to intervene in FX markets should limit excessive CHF appreciation, even if the USD sees further upside on rising US real yields.