Snapshot: USD/CHF trades at 0.7839, down 0.94% intraday, as Swiss yields decline. The SNB’s active easing posture, underscored by last month’s 25bp rate cut and ongoing readiness for FX intervention, keeps downward pressure on the Swiss Franc. Watch for the 08:30 ET US GDP print which could spark volatility.
- The 0.7800 level is key support for USD/CHF.
- Upside risk stems from a significantly stronger-than-expected US GDP print at 08:30 ET, potentially reigniting USD strength.
Bias into NY: We expect continued CHF strength, targeting a break below 0.7800, given the SNB’s dovish stance; this move may be amplified by broader USD weakness as the DXY slips below 98.50.