Snapshot: USD/CHF trades around 0.7807, slightly higher after yesterday’s session. The SNB’s active easing posture, highlighted by Governor Schlegel’s openness to negative rates if disinflation persists, remains the key driver. Traders are also watching 08:30 ET US CPI prints, though the SNB stance dominates.
- Watch for a break above 0.7820, which could signal further near-term CHF weakness.
- A surprisingly hot US CPI print at 08:30 ET could accelerate USD strength against the Franc.
Bias into NY: Short-term bias is towards USD/CHF upside given the SNB’s easing bias and moderately short CHF positioning, targeting a potential move towards 0.7850. US 10Y Breakevens are also bid, up 2bp, providing a mild tailwind.