UBS and CFA Society Switzerland released new data on July 30, 2025, showing a positive shift in investor sentiment. The UBS investor sentiment index for July rose to +2.4, up from -2.1 in the previous month. Many analysts do not expect additional interest rate cuts from the Swiss National Bank (SNB). This better sentiment is supported by an improved economic outlook. This is the first time since February that the index has moved above zero.

Investor Sentiment Turns Positive

Investor sentiment in Switzerland has turned positive for the first time since February, signaling a noteworthy trend. The market largely believes that the Swiss National Bank (SNB) will not lower interest rates further this year. This change is a key reason for the brighter outlook. In the past, the SNB led other central banks by cutting rates in March and June 2024, which caused the franc to weaken. That trend seems to have reversed, as attention now shifts to economic stability and a halt on rate cuts. This change in policy is important for investing in Swiss assets. Recent statistics support the encouraging economic forecast. For example, the State Secretariat for Economic Affairs (SECO) raised its 2025 GDP growth estimate to 1.5%, and the latest manufacturing PMI remains above the growth threshold of 51.0. This suggests traders might explore bullish strategies with Swiss equities, like buying call options on the Swiss Market Index (SMI).

Strengthening Swiss Franc

This positive outlook should help strengthen the Swiss franc (CHF). We are already seeing the EUR/CHF currency pair drop from its peak of around 0.98 and move to lower levels. This trend favors strategies that benefit from a stronger franc, such as buying puts on the EUR/CHF or calls on the CHF/USD. Implied volatility on franc options may still be low because of the recent negative sentiment. This could provide a cost-effective chance to set up long positions on the currency. The current market conditions make it appealing to invest in franc appreciation in the coming weeks. Create your live VT Markets account and start trading now.

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