USD/CHF rises to fresh highs near 0.7970 after SNB's decision

• The US Dollar appreciates further beyond 0.7960 following the SNB's monetary policy decision.
• The SNB kept rates on hold at 0% but the monetary policy statement was tilted to the dovish side.
• The Swiss central bank sees US tariffs threatening economic growth and employment.

The US Dollar maintains a moderately positive bias against the Swiss Franc on Wednesday, following the Swiss National Bank’s monetary policy decision. The pair appreciated to session highs near 0.7970, following a strong rebound from lows right above 0.7900 on Wednesday.

The SNB met the market expectations and kept its benchmark interest rate at 0% following its latest monetary policy meeting. The bank has cut rates by 175 basis points since March last year, and investors have started speculating about the possibility of negative interest rates over the last weeks.

The SNB is concerned about growth and employment

The bank statement has been tilted to the dovish side. The committee warns about higher unemployment risks, with the economic outlook threatened by US tariffs and high uncertainty. GDP Growth expectations for 2025 remain in a range between 1% to 1.5% and below 1% in 2026. Annual inflation is seen at 0.2% this year and 0.5% in 2026.

The market is now awaiting the press release by SNB President, Martin Schlegel, for further clues about the bank’s forward guidance.

In the US, Fed officials, including Chairman Powell, have been hinting at a slow easing cycle, which has provided some support to the US Dollar. Later today, more Fed speakers and the final reading of the US Q2 GDP might provide a wider view of the bank’s monetary policy plans.

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