Swiss Franc weakens as SNB resists currency strength, US CPI awaited

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USD/CHF trades around 0.7815 on Tuesday at the time of writing, up 0.46% on the day, supported by renewed demand for the US Dollar (USD) amid fresh geopolitical tensions in the Middle East.

USD/CHF gains ground as deteriorating market sentiment boosts demand for US Dollar.
The SNB continues to lean against Swiss Franc strength despite a slight rebound in inflation.
Markets now await US inflation data to refine expectations for the Fed’s monetary policy path.

USD/CHF trades around 0.7815 on Tuesday at the time of writing, up 0.46% on the day, supported by renewed demand for the US Dollar (USD) amid fresh geopolitical tensions in the Middle East.

Market sentiment deteriorates after comments from United States (US) President Donald Trump stating that the US-Iran ceasefire is on “life support.” According to CNN, several members of his administration are now reportedly considering a resumption of major military operations more seriously. This backdrop revives safe-haven flows and supports the Greenback.

The US Dollar Index (DXY), which measures the US Dollar’s performance against a basket of six major currencies, rises toward 98.30, also supported by increasingly hawkish expectations regarding the Federal Reserve’s (Fed) monetary policy.

Investors are now awaiting the release of the US Consumer Price Index (CPI) for April. Consensus expects annual inflation to accelerate to 3.7% from 3.3% previously, while core inflation is seen rising to 2.7% from 2.6% in March. Stronger-than-expected figures could reinforce expectations that the Fed will keep interest rates higher for longer, further supporting the US Dollar.

On the Swiss side, recent data showed inflation rose for a second consecutive month, although it remains well below the Swiss National Bank’s (SNB) 2% target. Annual inflation reached 0.6% in April after 0.3% in March, while core inflation slowed to 0.3%.

MUFG economists note that the Swiss Franc (CHF) has underperformed since the beginning of the Middle East war, as the SNB has clearly signaled its willingness to limit currency appreciation. SNB Governor Martin Schlegel also downplayed the recent increase in inflation, stating that medium-term price pressures had “hardly changed.”

However, MUFG believes that a prolonged closure of the Strait of Hormuz and a sustained rise in energy prices could push the Swiss National Bank toward a more hawkish stance in the coming months. Money markets are already starting to price in a higher chance of an SNB rate hike by the end of the year.

Swiss Franc Price Today

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today. Swiss Franc was the strongest against the British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.38%	0.59%	0.22%	0.24%	0.35%	0.26%	0.44%
EUR	-0.38%		0.20%	-0.15%	-0.17%	-0.03%	-0.14%	0.07%
GBP	-0.59%	-0.20%		-0.36%	-0.38%	-0.25%	-0.34%	-0.15%
JPY	-0.22%	0.15%	0.36%		-0.01%	0.10%	0.02%	0.20%
CAD	-0.24%	0.17%	0.38%	0.01%		0.12%	0.03%	0.20%
AUD	-0.35%	0.03%	0.25%	-0.10%	-0.12%		-0.08%	0.09%
NZD	-0.26%	0.14%	0.34%	-0.02%	-0.03%	0.08%		0.17%
CHF	-0.44%	-0.07%	0.15%	-0.20%	-0.20%	-0.09%	-0.17%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).