The CHF to USD exchange rate is currently range-bound. The Swiss National Bank's recent interest rate reduction to 0.5% aims to counter easing inflation and the strong franc. In contrast, the Federal Reserve is expected to implement three rate cuts by mid-2026, likely weakening the USD in the short term.
Recent inflation trends in Switzerland show a drop to 0.1% in October, influenced by lower energy prices. Meanwhile, improving global growth could support USD stability due to rising commodity prices.
The expected near-term range for the CHF/USD is likely to remain within a tight band, reflecting recent stability around current price levels.
Upside risk could arise from further negative interest rates by the SNB if the franc remains strong. Conversely, downside risk comes from potential USD strengthening due to unexpected changes in U.S. economic growth or commodity prices.