🔼 Market Overview
- USD/CHF rose to near 0.7950 on Wednesday, driven by:
- A broad-based US Dollar recovery
- Risk-off market sentiment
- Market caution ahead of Thursday’s SNB policy decision
🏦 US Factors Supporting USD
- US Dollar gains as investors shift to safe-haven assets
- US economic data (Tuesday):
- Business activity in services and manufacturing slowed in September
- However, data still shows moderate growth
- Fed Chair Jerome Powell repeated:
- Inflation risks remain elevated
- Labor market is softening
- Warned that further rate cuts are not guaranteed
- Despite Powell’s warning, markets still expect rate cuts in November and December
🇨🇭 Swiss Economic Outlook and SNB Focus
- ZEW Expectations Index (Sep):
- ✅ Improved to -46.4 (from -53.8 in August)
- Suggests slightly better business sentiment in Switzerland
- Swiss National Bank (SNB) policy decision:
- 📅 Due Thursday
- Interest rates expected to stay at 0%
- However, due to:
- Weak economic data
- Global trade uncertainty
- The SNB may signal potential future rate cuts
- This outlook keeps CHF under pressure, favoring USD/CHF upside
📊 USD/CHF Technical Outlook
- Price nears 0.7950, the highest level this week
- Risk remains tilted to the upside for USD/CHF
- Market attention is focused on:
- SNB’s forward guidance
- Continued US Dollar strength
❓ SNB FAQs Summary
| Topic | Key Info |
|---|---|
| What is SNB? | Swiss National Bank – Switzerland’s central bank. Mandate: Price stability. |
| Inflation Target | CPI inflation < 2% annually |
| Interest Rate Policy | Higher rates → Strong CHF; Lower rates → Weak CHF |
| Forex Intervention? | Yes – SNB buys foreign currencies to weaken CHF if it’s too strong |
| When Does SNB Meet? | Quarterly: March, June, September, December |