USD/CHF Outlook: Slightly weaker, but likely to move sideways, as the rate is below its recent average and lacks a clear driver to push it up significantly.
Key drivers:
• The Federal Reserve's decision to pause rate cuts could weigh on the USD as investors look for stronger signals of monetary support while the Swiss National Bank is being pressured by the strength of the CHF.
• The CHF continues to gain ground due to its safe-haven appeal amid geopolitical tensions surrounding US political instability, which encourages investment in Swiss assets.
• Rising speculation about potential monetary policy changes from the Swiss National Bank could add uncertainty to the CHF's future performance.
Range: The USD/CHF is expected to drift sideways within its recent trading range, without strong moves toward the extremes.
What could change it:
• An unexpected increase in US employment figures could bolster the USD against the CHF.
• Heightened geopolitical tensions leading to an increased flight to safety may further strengthen the CHF, pushing the USD lower.
