• USD/CHF tests a three-week low below 0.7985 after SNB's decision.
• The Swiss Central Bank left rates unchanged at 0% and hinted at a moderate economic growth in 2026.
• The US Dollar remains on the defensive after a dovish Fed statement on Wednesday.

The Swiss Franc is drawing support from the Swiss National Bank's (SNB), monetary policy decision. The USD/CHF has turned lower from levels near the 0.8000 line, and is testing fresh three-week lows at 0.7985 at the time of writing, after having depreciated nearly 1% in the last three days.

The SNB met investors' expectations and left its benchmark interest rate unchanged at 0% on Wednesday. Markets are now expecting the press release from the bank’s governor, Martin Schlegel, for further insight on the near-term monetary policy plans.

The bank’s statement highlights the lower-than-expected inflationary trends but affirms that the medium-term inflation remains virtually unchanged from the previous monetary policy meeting. The bank also notes that the Swiss economy contracted in Q3 but sees an improved economic outlook amid lower US tariffs and a somewhat stronger global growth, all in all, curbing hopes of negative interest rates.

The US Dollar, on the other hand, remains on the defensive following a more dovish than expected monetary policy decision by the US Federal Reserve (Fed) on Wednesday. The Fed cut rates by 25 basis points as expected and signalled only one further cut in 2026. Investors, however, remain confident that the bank will ease its monetary policy further next year, amid the soft hawkish dissent and Chairman Powell’s comments, downplaying concerns about inflation and ruling out rate hikes.