Snapshot: USD/CHF is currently trading around 0.7823, up 0.21% from the previous session. The persistent easing bias of the SNB, highlighted by the possibility of returning to negative rates if disinflation overshoots, remains the dominant driver. Today’s key event is the 08:30 ET US PPI release.
- Watch for any signals from SNB officials hinting at further policy action, potentially pushing USD/CHF higher towards 0.7900.
- The risk lies in a significant downside surprise in the 08:30 ET US PPI figures, potentially triggering a risk-off move and a flight to safety back into the Swiss Franc.
Bias into NY: The SNB’s commitment to easing and readiness for FX intervention suggests continued upside pressure on USD/CHF; we are targeting a break above 0.7850, conditional on US PPI not cratering.