Snapshot: USD/CHF sits at 0.7878, up 0.44% on the session. The Swiss National Bank’s active easing posture, highlighted by the recent 25bp rate cut and ongoing readiness for FX intervention, continues to weigh on the Swiss Franc. Focus shifts to 10:00 ET US Pending Home Sales.
- Watch for any signals of increased SNB intervention to defend against excessive CHF strength.
- Risk: any hawkish surprises from US data that could trigger a broader USD rally.
Bias into NY: Expect continued USD/CHF upside targeting 0.7900 as the SNB’s easing bias contrasts with the stickiness of US inflation and consequent repricing of Fed cuts. The rise in US 2Y and 10Y yields further supports this view.