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    After a gap up, USD/CHF rises above 0.7950 on trade deal optimism

    by VT Markets
    /
    Oct 27, 2025

    The Swiss Franc Outlook

    The Swiss Franc (CHF) could see gains due to lower expectations for policy changes from the Swiss National Bank (SNB). The SNB is confident in its current monetary policy and is not focusing on negative interest rates while keeping a growth-supportive stance. As a key global currency, the value of the CHF depends on Switzerland’s economic strength and the actions of the SNB. Its status as a safe-haven currency makes it more attractive during market uncertainty. The Swiss economy’s close ties to the Eurozone lead to a strong link between the CHF and the Euro (EUR). To accurately assess the CHF’s value, it’s essential to consider macroeconomic stability in Europe. Key factors, such as growth, inflation, and the central bank’s reserves, along with conditions in the Eurozone, greatly affect CHF movements.

    Current USD/CHF Dynamics

    Today, October 27, 2025, the USD/CHF situation is much different from what we saw earlier. Back then, the exchange rate was below 0.8000, driven by hopes for US-China trade agreements and expectations of lower rates from the Federal Reserve. Now, the pair is around 0.9120, signaling significant changes in central bank policies over the past few years. The earlier analysis accurately predicted the Federal Reserve’s interest rate cuts, but it did not anticipate the sharp rise in inflation that followed. In response, the Fed raised rates aggressively, reaching a peak of 5.50% in 2023, and it is currently at 4.75%. Recent U.S. Consumer Price Index (CPI) data from September 2025 shows persistent inflation at 2.8%, indicating that the Fed may not ease its policy anytime soon. Meanwhile, the Swiss National Bank’s decision to stop its negative interest rate policy was a crucial moment. It raised its policy rate to 1.75% to tackle inflation. This key move has significantly boosted the value of the Swiss Franc against the US Dollar since then. Create your live VT Markets account and start trading now.

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