Snapshot: USD/CHF sits near 0.7847, down 0.25% from Friday. The Swiss Franc finds support in the SNB’s cautious approach to further easing, despite recent rate cuts. The market is pricing in continued vigilance from Schlegel and his team.
- Watch for potential SNB FX intervention signals if USD/CHF tests lower towards 0.7800; Schlegel has kept negative rates on the table.
- Rising US real yields could exert some downward pressure on the Swiss Franc if the US data prints strong, eroding CHF safe-haven appeal.
Bias into NY: Bullish CHF. The SNB’s easing optionality, contrasted against broadly steady US yields, keeps USD/CHF pressured. Expect continued downward pressure on USD/CHF towards 0.7800.