Snapshot: USD/CHF is trading at 0.7852, up 0.29% on the day, driven primarily by the SNB’s active easing posture. With headline CPI near zero and persistent CHF strength, the SNB’s readiness to intervene in FX markets remains a key factor. Today’s focus will be on the 10:00 ET US CB Consumer Confidence release.
- Watch for a break above 0.7855, the day’s high, which could open the door to further gains.
- A weaker-than-expected US Consumer Confidence print could temper USD strength and provide some support to the Swiss Franc.
Bias into NY: We see continued USD/CHF upside as the SNB maintains its easing bias and negative rate optionality. Look for a potential test of 0.7900 if risk sentiment deteriorates and the DXY continues to firm.