The rate of USD to CHF has been steady for most of April, but that might change next week as the SNB confirms that they have finished the job with inflation. The lows are still getting higher for USD/CHF which is a bullish signal, and Jordan’s comments last week will add further weakness to the CHF, sending this pair higher, while the FED is still keeping interest rates high.

USD/CHF Chart H4 – The 20 SMA Keeps Holding As Support

The USD/CHF forex pair has shown a bullish trend since the end of December, experiencing a reversal after the previous downtrend. This year, the Swiss Franc has been one of the weakest major currencies against the US Dollar, together with the Yen. The pair has risen significantly from around 0.8330s to 0.9150s, marking a gain of more than 8 cents from its low point. This bullish movement indicates a strengthening of the US Dollar relative to the Swiss Franc in the forex market as a result of the divergence between the SNB policy which has cut interest rates already and the FED which is pushing the first cut further back.

Before the weekend, the Swiss National Bank Chair Jordan made a TV appearance, where he confirmed that the SNB’s job of fighting inflation is done, meaning that they will continue easing the policy. He also added that it’s not a central bank’s job to do the fight for the climate agenda, since they have been accused of financing certain companies.

Remarks by SNB chairman, Thomas Jordan

• The SNB has been successful in fighting inflation, indicating confidence in the effectiveness of its monetary policy measures.
• Despite successes, uncertainty remains elevated, and shocks can occur at any time, suggesting a cautious approach to monetary policy.
• The SNB will continue to closely monitor inflation and adjust policy as needed, emphasizing its commitment to maintaining price stability.
• Jordan criticizes demands by critics for the SNB to broaden its mandate, warning that such actions could be dangerous.
• He cautions against the perception that monetary policy alone can solve all the world’s problems, implying the need for a balanced approach to addressing economic challenges.

The statement underscores the SNB’s approach to responsible investing, emphasizing the consideration of all risks and the implementation of exclusion rules. It appears to address concerns from environmental groups regarding the SNB’s investment practices, particularly with regards to companies potentially contributing to global warming and climate change.

USD/CHF Live Chart