Snapshot: USD/CHF currently trades at 0.7773, down 0.41% on the session, driven by the SNB’s active easing stance and the possibility of further rate cuts. Schlegel’s recent comments regarding a potential return to negative rates if disinflation overshoots is weighing on the Franc. Later today, the 08:30 ET US jobs report will be pivotal.
- Watch for a break below 0.7770, which could trigger further downside in USD/CHF.
- A stronger-than-expected US jobs report could provide a temporary boost to the pair, but the SNB’s dovish stance should limit upside.
Bias into NY: We anticipate continued downward pressure on USD/CHF, targeting 0.7750, as the market focuses on the SNB’s easing bias and the attractiveness of CHF as a safe haven given rising global uncertainty.