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USD/CHF reaches best levels since October 2023

Back in October last year the USD/CHF peaked at 0.9244. The slide in the dollar that ensued saw the USD/CHF fall back to a low at 0.8333 by the end of December. Granted a good deal of that fall was induced by the slide in the EUR/CHF at the same time. The dollar was already on the rebound, when the SNB delivered a massive surprise on March 21, when they lower their OCR by 0.25%, to 1.5%. That news pushed the USD/CHF back above 0.90 for the first time this year. The US CPI data yesterday helped to cement that rise and now the USD/CHF has taken out the 0.9100 handle. The prospect of the ECB following the SNB today is of course open to debate, as covered here earlier this morning. Leaving that aside, the outlook for the SNB to try and engineer a weaker CHF versus both the Euro and the dollar is live. To be honest anything in the USD/CHF this side of parity marks it as extremely cheap on a longer term basis, when gauged over the past 2-3 decades. At the same time, the CHF retains its status as a haven currency and the SNB will need to act more, on a number of fronts in order to change that. The USD/CHF has risen to within a 100 points of that October 2023 high today. It is currently trading at 0.9139

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