The CHF to USD exchange rate appears to be range-bound in the near term.
Key drivers include the expectation of increased USD weakness due to upcoming Federal Reserve rate cuts, suggesting reduced demand for the dollar. In contrast, the Swiss National Bank's recent rate cuts and unexpectedly low inflation could bolster the CHF, providing upward pressure against the USD. Global economic growth is also a factor, as it might support the dollar despite the expected easing from the Fed.
The expected trading range suggests CHF may fluctuate but remains relatively stable against the dollar over the next few months.
An upside risk could emerge if the Swiss economy faces renewed pressures from tariffs, making the currency less desirable. Meanwhile, a downside risk for the CHF could arise if US economic performance exceeds expectations, strengthening the dollar despite anticipated rate cuts.
