USD/CHF Remains Bearish on Further SNB Hikes

Although the CHF is expected to maintain its value as the Swiss National Bank (SNB) let the markets know its plans to continue raising interest rates. The SNB hiked rates by 50 basis points to 1.5% yesterday, and has stated that additional increases may be necessary to maintain price stability over the medium term.

The decision to raise interest rates was driven by concerns over inflationary pressures, which the SNB believes have re-emerged again recently. Despite the recent turmoil in the Swiss banking sector, the SNB didn’t take it too much into account in its decision to raise interest rates, which demonstrates the central bank’s commitment to maintaining price stability. This suggests that the CHF may continue to be viewed as a safe-haven asset, with investors relying on the SNB’s policies to support its. USD/CHF has been bearish this week and is heading toward the support zone above 0.90.