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USD/CHF hits highest level since May 2025 as SNB keeps rates at 0%
The pair was last around 0.8275, up 0.27% on the day, after the SNB signaled it pushed back against market expectations for 50 to 75 bps of hikes over the next 12 months.
FXStreet reports that USD/CHF rose to its highest level since May 2025 on Thursday as the Swiss franc weakened broadly after the Swiss National Bank left its policy rate unchanged at 0%. The decision came as other major central banks raised borrowing costs to counter inflation tied to higher oil prices, adding to the USD's relative strength.
The outlet cited analysis from Brown Brothers Harriman, which said the SNB appeared to stay “at ground zero” versus market pricing, pushing back on expectations for 50 to 75 bps of hikes in the next 12 months. BBH also noted that the SNB emphasized policy is appropriate to keep inflation within its mandate of less than 2% per annum, even as its inflation projection was nudged up slightly due to higher oil product prices.
BBH’s view, as relayed by FXStreet, was that the widening US-Swiss and EU-Swiss yield gaps could keep upside pressure on USD/CHF and EUR/CHF, with the franc lagging peers facing more hawkish rate expectations. On the technical side, USD/CHF extended above the 50-, 100-, and 200-day SMAs, while RSI(14) hovered near 68, close to overbought.
FXStreet also flagged key levels, including support near 0.8200, the 50-day SMA around 0.8122, and the 200-day SMA near 0.7947, with resistance around 0.8350. It said a sustained break above that level could open further gains, while failure could lead to a pullback toward the support band.