The current market bias for CHF to CNY is range-bound.
Key drivers influencing this exchange rate include the interest rate differential between Switzerland and China, with the Swiss National Bank’s recent rate cuts pushing the CHF's effectiveness down. Additionally, lower inflation in Switzerland has weakened the currency, while the People's Bank of China's cautious approach to policy eases pressure on the CNY amid expectations of gradual appreciation. An anticipated economic growth target of around 5% in China could also provide support to the yuan.
In the near term, the CHF to CNY exchange rate is expected to remain within a stable range, reflecting the recent trading activity around the 8.83 level.
Upside risks for the CHF may arise from unexpected economic rebounds in Switzerland or shifts in global trade dynamics. Conversely, a renewed escalation in tariffs or restrictive policies affecting Swiss exports could provide downside pressure on the currency pair.