USD/CHF extends its winning streak for a fifth consecutive day on Thursday, rising toward the 0.8065–0.8070 area during Asian trading. The pair is up nearly 0.10% intraday and remains supported by strong bullish momentum in the US Dollar (USD).
The US Dollar Index (DXY), which measures the Greenback against a basket of major currencies, has surged to its highest level since late May as markets scale back expectations for a December Federal Reserve (Fed) rate cut. Wednesday’s FOMC minutes showed policymakers were divided on the path forward, reducing the likelihood of additional easing and reinforcing USD strength.
Swiss franc underperforms amid risk-on mood
Switzerland’s recent trade agreement with the United States had little impact on markets, particularly as weak domestic data showed the export-heavy Swiss economy contracted in Q3 for the first time in more than two years. At the same time, a renewed risk-on tone in global markets is weighing on the safe-haven Swiss Franc (CHF), further supporting USD/CHF.
Expectations that the Swiss National Bank (SNB) will keep its policy rate unchanged at 0% in December—despite warnings of rising inflation—may help limit the Franc’s downside but are not enough to offset broader USD demand.
Focus shifts to US NFP; technical outlook remains bullish
Dollar bulls may take a cautious approach ahead of the delayed US Nonfarm Payrolls (NFP) release for September. However, the broader backdrop continues to favor further gains in USD/CHF. From a technical standpoint, Wednesday’s decisive break above the 100-day Simple Moving Average (SMA) reinforces the bullish bias and opens the door for additional upside in the near term.
