Snapshot: USD/CHF trades at 0.7856, up 0.50% on the session, driven by the SNB’s active easing posture. The market continues to price in the potential for further rate cuts or FX intervention amid persistent CHF strength and near-zero CPI. Traders will be watching for the 10:00 ET ISM Manufacturing PMI release.
- Watch for a break above intraday high of 0.7858; failure to do so may signal profit-taking.
- Risk: Stronger-than-expected ISM Manufacturing print could exacerbate USD strength.
Bias into NY: Bullish on USD/CHF while the SNB maintains an active easing bias, targeting a move towards 0.7900. The US-CH 10Y yield spread at +405bp continues to favour USD strength, adding to the domestic Swiss pressure.