The Swiss franc rose in European trading on Thursday against a basket of global currencies, resuming gains against the U.S. dollar as the greenback’s rally paused ahead of key U.S. economic data releases.
The franc’s advance, however, remains limited, with investors refraining from building large positions ahead of the Swiss National Bank’s (SNB) policy decision, where rates are widely expected to remain unchanged.
Price Overview
USD/CHF today: the dollar slipped 0.1% to 0.7938 francs, down from the opening level of 0.7947, after touching a high of 0.7951.
The franc ended Wednesday down about 0.5% against the dollar, snapping a three-day winning streak, after cautious remarks from some Federal Reserve policymakers.
U.S. Dollar
The U.S. dollar index fell 0.1% on Thursday, retreating from a two-week high of 97.92, reflecting a pause in the dollar’s upward momentum against global currencies.
Beyond profit-taking and corrections, the dollar is easing ahead of key U.S. releases on Q2 GDP growth and weekly jobless claims. These data are expected to provide clearer signals on whether the Federal Reserve will continue cutting rates in the remainder of the year, particularly after the cautious tone expressed by Fed officials.
Swiss National Bank
The SNB concludes its regular policy meeting to assess economic conditions, with markets expecting no change in rates, which remain at 0.00%.
This decision would mark a pause in the monetary easing cycle that began in September 2023 and continued through the June meeting, coming against a backdrop of mounting inflationary pressures, especially from external factors.
The policy rate decision is due at 08:30 GMT, followed by remarks from the SNB Chairman and other officials at a press conference at 09:00 GMT.
Outlook for the Swiss Franc
Here at Economies.com, we expect the franc to continue rising against the U.S. dollar if the SNB delivers comments and projections that are more hawkish than markets currently anticipate.
