- The USD/CHF attracts buyers for the fifth consecutive day in the middle of a stronger USD.
- The Fed hard line pause on Wednesday raised the USD to a maximum of more than a week.
- The most aggressive rate cuts expectations by SNB continue to weigh on the CHF.
The USD/CHF pair is based on its recent recovery from the neighborhood of mid -8000, or a minimum of almost two months reached last week, and goes up for the fifth consecutive day on Thursday. The impulse elevates cash prices to more than a week during the Asian session, with the bullies waiting for a sustained movement beyond the 0.8200 mark before the risk of the key event of the Central Bank.
The Swiss National Bank (SNB) will announce its policy decision later today and it is widely expected to reduce interest rates at 25 basic points (BPS) to zero. In addition, investors seem convinced that the Central Bank will not refrain from implementing negative interest rates this year in the middle of the growing uncertainty about the US tariff political erratic.
In fact, the dollar index (DXY), which tracks the green ticket in front of a foreign exchange basket, advances to its highest level in more than a week after the Federal Reserve Line Pause (Fed) on Wednesday. In the so -called points chart, the Committee projected two feat cuts by the end of 2025, although those responsible for the policy see only a 25 basic points cut in each of 2026 and 2027. This, in turn, offers additional support to the USD/CHF torque. However, the increase in geopolitical tensions could limit deepest losses for the CHF of safe refuge.
As the conflict between Israel and Iran enters its seventh day, the reports suggest that US officials are preparing for a possible attack by Iran this weekend. The Israel Defense Forces (IDF) warned the residents of the cities of Arak and Khondab in the center of Iran that evacue them for their safety, since they are operating in the area against Iranian military infrastructure. This increases the risk of a total war in the Middle East, which, together with the persistent uncertainties related to trade, continues to weigh on the feeling of investors and triggers global flight towards security.
Economic indicator
SNB interest rate decision
He Swiss National Bank (SNB) announces its decision on the interest rate after each of the four scheduled annual meetings of the bank, one per quarter. Generally, if the SNB has an aggressive perspective on the inflation of the economy and uploads interest rates, it is bullish for the Swiss Franco (CHF). In the same way, if the SNB has a moderate vision of the economy and maintains interest rates without changes, or cut them, it is generally bassist for the CHF.
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PLAY JUN 19, 2025 07:30
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Swiss National Bank
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
