USD/CHF

• USDCHF declined due to falling U.S. Treasury yields and profit-taking. • Safe-haven demand and risk aversion increased capital inflows into the franc. • Technical indicators like MACD and RSI show neutral market conditions.

USD/CHF climbs to its highest level since May 2025 on Wednesday as hotter-than-expected US inflation data strengthen expectations of further Federal Reserve (Fed) interest rate hikes.

• USDCHF advanced due to widening short-term yield differentials favoring the dollar. • Fed and SNB policy divergence drove capital into higher-yielding U.S. assets. • Williams %R indicates overbought conditions while MACD and RSI remain neutral.

The Swiss Franc (CHF) has given away earlier gains against the US Dollar (USD) during Wednesday’s European session, but remains trading within previous ranges, with investors cautious, awaiting the release of key US inflation data.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that USD/CHF remains locked in a tight range, with intraday expectations between 0.8315 and 0.8350. For the 1–3 weeks horizon, they see the Dollar trading within 0.8295/0.8365, citing tentative momentum. Over 1–3 months, they expect further rebound but not enough strength to revisit the July peak.

The USD/CHF pair shows some resilience below the 23.6% Fibonacci retracement level of the recent upswing from the monthly trough for the second day and attracts some dip-buyers near the 0.8320-0.8315 region.