Swiss Franc falls vs USD, climbs against Euro in mixed trade
The Swiss Franc extends its losses for the fifth straight trading day against the Greenback, down 0.15%, as risk appetite sours amid the AI rout and expectations that the Federal Reserve could raise rates later this year. At the time of writing, the USD/CHF trades at 0.8100
Swissie weakens as Fed repricing and SNB pressure build
The scenario for the Swissie is of a central bank ─ the Swiss National Bank ─ worried about the appreciation of the CHF. Last week, the SNB kept rates unchanged at 0%, yet its Chairman, Martin Schlegel, commented that the situation in the Middle East remained uncertain, adding that the bank is ready to intervene in the foreign exchange markets due to the Franc’s “rapid and excessive appreciation.”
Aside from this, the sudden shift of policy stance by nearly half of the FOMC board in the US triggered a depreciation of the Swiss Franc vs the Greenback by nearly 2% since June 18.
Data from the US showed that economic activity in the manufacturing and services sectors is flourishing, driven by companies front-loading orders to avoid inventory shortages and rising prices.
In Europe, economic activity remains in contractionary territory, despite improving. S&P Global reported that manufacturing activity slowed but remained in expansion. On the other hand, the S&P Services PMI improved from 47.7 to 48.9, yet it remained in contractionary territory for the second consecutive month.
USD/CHF Technical Analysis
The USD/CHF daily chart shows the pair maintains an upward bias after hitting the 0.8042 target from the head-and-shoulders pattern. It is approaching the 0.8100 level, closing around 0.8090. A break above this will open the way to the 0.8100 milestone, followed by the August 1, 2025, high at 0.8172, and eventually the 0.8200 level.
EUR/CHF Technical Analysis
The EUR/CHF pair recoiled on Tuesday, diving below the 200-day SMA at 0.9227, opening the door to a retest of 0.9200. Worth noting that momentum remains bullish, but buyers need to clear the latest cycle high seen at 0.9266, the June 22 high, so that they can challenge the 0.9300 mark.
On the downside, if the EUR/CHF dives below 0.9200, look for further losses, with the next area of interest seen at 0.9180, the June 17 daily low.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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