Snapshot: USD/CHF is trading at 0.8132, up 0.49% on the day. The Swiss National Bank’s unwavering commitment to FX intervention as its primary tool for managing CHF strength, even with benign inflation, remains the dominant domestic driver. Today’s session sees no immediate domestic data, leaving the market to digest recent SNB commentary and cross-currency flows.
- SNB’s readiness to intervene continues to cap significant CHF appreciation, with rates firmly anchored at 0.00% and no hike expected until H2 2027.
- Watch for any shifts in the DXY’s trajectory and US Treasury yields, which are currently pressuring USD/CHF higher.
Bias into NY: The bias remains for USD/CHF to trade higher, driven by a robust DXY and falling US yields, with the SNB’s intervention capacity acting as a ceiling rather than a floor for the Franc. We see resistance at 0.8150.