Snapshot: USD/CHF trades at 0.7858, down 0.11% on the session, pressured by the SNB’s active easing stance. Schlegel’s recent comments indicating a willingness to consider negative rates again if disinflation overshoots keeps the pressure on the Franc. All eyes on 10:00 ET JOLTS data out of the US.
- The Swiss 2Y yield sits at just 0.084%, reinforcing the SNB’s dovish bias and weighing on USD/CHF.
- A significant risk stems from potential SNB FX intervention, which could trigger a sharp CHF appreciation if deployed aggressively.
Bias into NY: Expect continued pressure on USD/CHF as the SNB’s easing stance remains a dominant force. A break below 0.7845 would open the door to further downside.