Trump Talks About Interest Rates

US President Trump shared his thoughts on interest rates, suggesting he favors lower rates. Traders are paying close attention to the Swiss ZEW Expectations survey for December, looking for clues about business conditions and the Swiss National Bank’s approach to rates. The Swiss Franc is seen as a safe-haven currency, thanks to Switzerland’s stable economy and political neutrality. The value of the Franc is heavily influenced by decisions made by the Swiss National Bank, especially regarding interest rates and inflation. Switzerland relies a lot on the Eurozone, which means the strength of the Swiss Franc often moves in tandem with the Euro. Economic reports from Switzerland also affect the Franc’s value compared to other currencies.

Swiss Franc as a Safe Haven

Today, December 22, 2025, we see the USD/CHF pair fall below 0.7950, creating a trading opportunity before important data is released. Traders should brace for possible market swings due to tomorrow’s US Q3 GDP results and the Swiss ZEW survey. The US Q2 GDP was a modest 1.8%, and another weak Q3 figure might put more pressure on the US Dollar. Earlier in 2025, the Federal Reserve cut rates by 75 basis points. Now, we’re examining the effects of those cuts. With November’s core PCE inflation steady at 2.8%, the Fed might hold rates steady, which is reflected in a 79% chance of no change in January. This situation creates tension for the dollar, suggesting strategies could bank on stable conditions or a sudden shift due to unexpected policy changes. On the Swiss front, tomorrow’s ZEW survey will shed light on business sentiment after November’s report showed a bit of pessimism. The Swiss National Bank has indicated it is unlikely to reintroduce negative interest rates, which supports the Franc. This position limits the potential for the Franc to weaken significantly, even if the economic data isn’t great. We also need to think about the Swiss Franc’s appeal as a safe-haven asset, which may strengthen if global markets become shaky as we approach 2026. Because the Franc is often closely related to the Euro, we should monitor policy statements from the European Central Bank. Any differences in policy between the Fed and the ECB could easily affect the USD/CHF pair. Create your live VT Markets account and start trading now.

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