The current market bias for USD to CHF is bearish as the USD shows signs of weakening.
Key drivers include the anticipated interest rate cuts from the Federal Reserve, which could lower the USD's value in 2026. Additionally, improving global economic growth may increase volatility for the USD. For the Swiss Franc (CHF), the Swiss National Bank's past rate cuts alongside unexpectedly low inflation has supported its strength, with potential ramifications for future monetary policy.
The expected near-term trading range for USD to CHF is likely to remain stable but may fluctuate within a few percent around current levels.
An upside risk could arise from unexpected resilience in the U.S. economy, while a downside risk includes any further escalation in tariffs affecting Swiss exports, potentially destabilizing the CHF. Thus, trading environments may experience notable shifts based on macroeconomic developments and policy changes.