USD/CHF remains around 0.8200 after the SNB announces an interest rate cut of a basic point

• The USD/CHF maintains profits since the SNB reduced the reference interest rate of the tank in view at 25 basic points in the second quarter.
• Switzerland’s commercial surplus was reduced to 2.0 billion CHF in May, from the 5.4 billion April Chf.
• Risk aversion progresses due to the possibility that the United States is directly involved in the Israel-Iran conflict.

The USD/CHF continues its winning streak for fifth consecutive session, quoting around 0.8200 during the European hours on Thursday. The pair maintains profits after the publication of the decision on the interest rate by the Swiss National Bank (SNB).

The Swiss Franco (CHF) faces challenges since the SNB decided to make a quarter -point rate cut in the second quarter, carrying the reference interest rate of the tank in view at 0.00%, as expected widely. The weakening of the CHF could be contained since the markets were also valuing 25% probabilities of a 50 basic points cut. SNB officials keep the door open to negative rates, but emphasize that it is still a less preferred policy option.

In addition, Switzerland’s commercial surplus decreased to 2.0 billion CHF in May from 5.4 billion CHF reviewed down in April. The Swiss trade balance has marked the smallest surplus since December 2023, since monthly exports fell 13.6% to 21.0 billion CHF.

The USD/CHF torque can be seen since the US dollar (USD) receives support while operators adopt caution amid the growing tensions between Israel and Iran. Bloomberg informed Thursday that “US officials prepare for a possible attack by Iran in the next few days.” “US plans for any attack on Iran continue to evolve.” Another report of the Wall Street Journal suggests that US President Trump had approved attack plans on Tuesday to Iran, but wanted to see if Tehran would leave his nuclear program.