Investors will focus their attention on this week’s Swiss Franc as they await the Federal Reserve and Swiss National Bank to announce interest rates. USD/CHF was trading at 0.7850, a 15% drop from the highest level in 2025.
The EUR/CHF was also at 0,9065, which is 6.17% lower than its previous year’s high, as Swiss Franc strength continued despite its appeal to safe havens.
The Swiss Franc is a haven of safety amid increasing risks
In the last few months, the USD/CHF pair and EUR/CHF pair have fallen as the demand for Swiss Francs has increased amid elevated market risk.
The risks began to increase last year, when Donald Trump announced tariffs on all countries including Switzerland which, at one point, received the highest tariff reciprocal from the United States.
After Trump began his attack on Jerome Powell as the Federal Reserve head for not reducing interest rates, another danger was created. The crisis intensified late last year, when the Justice Department issued subpoenas for the Federal Reserve. Trump failed to succeed in removing Lisa Cook.
The demand for Swiss Francs has recently risen after Trump and Benjamin Netanyahu attacked Iran. They claimed that Iran was planning on developing nuclear weapons and attacking the United States.
Swiss National Bank sets out plans to curb the currency strength
As the Swiss National Bank announces its decision on interest rates, the USD/CHF pair and EUR/CHF will come into the spotlight. The Swiss National Bank will also highlight some of the steps it has taken to curb the strength of Swiss Franc.
Strong francs usually have a negative impact on the Swiss economy by increasing export prices. It is crucial because Switzerland, which is a country that is primarily export-oriented and sells goods valued at over $287 billion per year, is largely an exporter. Imports increased to $232 billion.
Analysts believe that the SNB will leave the interest rate at 0% where it has been for the last few months. The bank lowered rates by a whopping 1.75% from its 2024 peak. Analysts believe that it may move interest rates into the negative range this year.
Federal Reserve interest rate decision
Next, the Federal Reserve’s interest rate announcement on Wednesday will act as a key catalyst.
The bank is expected to keep interest rates between 3.5% and 3.75% unchanged as it deals with rising concerns about stagflation. Energy, shipping, and fertilizer costs are expected to continue increasing as the Iran War continues.
The country has also seen its economic growth slow down this year. Meanwhile, on the job market, unemployment is at a record high of 4.4%, and in February, over 92k new jobs were lost.
Technical Analysis of EUR/CHF
Source: TradingView
Three-day charts show that EUR/CHF remains in a down market, as investors prefer the Swiss Franc to the Euro.
The price fell below the crucial support level of 0.9200. This was its lowest point in April, November and July 2024. The move below this level has confirmed the negative outlook.
This pair is below the moving averages. It formed a small candlestick pattern called a “hammer”, which is often followed by a reverse.
The pair could continue to rise as bulls aim for the important resistance level of 0.9210. This would confirm a pattern that often results in further downside.
USD/CHF Technical Analysis
Source: TradingView
Three-day charts show that USD/CHF remains in a downtrend and hovers near the lowest levels in many years. The pair trades slightly higher than the low for this year of 0.7603.
This pair is below its Supertrend and all of its moving averages. The USD/CHF is most likely to continue falling as the market risk will increase in Trump’s time.
The ICD published this article: EUR/CHF Forecasts and USD/CHF Forecasts Ahead of SNB, FOMC Decisions.
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