Summary

• USD/CHF has strengthened sharply, rising 1.3% this week and more than 3.3% since the start of the month, supported by a stronger US dollar and weaker Swiss franc.
• The Fed’s hawkish tone boosted the dollar, as markets increased expectations for a possible US rate hike after Kevin Warsh emphasized price stability and the fight against inflation.
• The Swiss franc came under pressure after the SNB kept rates at 0% and signaled readiness to intervene in the FX market to prevent excessive franc appreciation, which supports the upward bias in USD/CHF.

By Krzysztof Kamiński

The USD/CHF pair has strengthened noticeably in recent days. This week, the exchange rate rose by 1.3%, and since the beginning of the current month it has gained more than 3.3%. This move has been