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Swiss Franc Strengthens Ahead of SNB Decision
Confirmed
In Short: The Swiss National Bank denied manipulating the Swiss franc as the currency strengthens ahead of its policy announcement.
The Swiss National Bank (SNB) on Friday denied any manipulation of the Swiss franc, responding to recent market speculation.
The Swiss franc's value has been influenced by various factors, including the interest-rate gap between the Bank of England and the SNB, as well as changes in inflation and wage data.
S&P Global services PMI came in at 51.7 points, below expectations of 52 points, keeping the Swiss franc interest-rate outlook in focus.
Traders are awaiting the SNB's interest rate decision, with economists expecting the bank to leave its policy rate unchanged at 0%.
According to DBS Group Research, the SNB is likely to raise its near-term inflation forecast due to elevated energy prices, despite improved Swiss growth and reduced haven pressures against the Euro and Pound.
The USD/CHF pair has depreciated, halting its three-day winning streak despite ongoing hawkish sentiment surrounding the Federal Reserve's policy outlook.
A Reuters poll showed that all 35 economists expect the SNB to hold its policy rate at 0% on September 24.
The Swiss franc has regained some ground, with traders likely booking profits following a one-sided rally from near the 0.8000 psychological mark in mid-August.
At the time of writing, USD/CHF trades around 0.8209, falling for a third straight day as attention shifts to the SNB's policy decision on Thursday.
What this adds
The SNB's denial of manipulation comes amid heightened scrutiny of currency markets following global tariff announcements.
The Bank of Japan's recent interest-rate hike to 1.25% from 1.00% adds to the monetary policy landscape, influencing expectations for the SNB's decision.
What's confirmed
- The Swiss National Bank (SNB) on Friday denied any manipulation of the Swiss franc, responding to recent market speculation.
- The Swiss franc's value has been influenced by various factors, including the interest-rate gap between the Bank of England and the SNB, as well as changes in inflation and wage data.
- S&P Global services PMI came in at 51.7 points, below expectations of 52 points, keeping the Swiss franc interest-rate outlook in focus.
- Traders are awaiting the SNB's interest rate decision, with economists expecting the bank to leave its policy rate unchanged at 0%.
- According to DBS Group Research, the SNB is likely to raise its near-term inflation forecast due to elevated energy prices, despite improved Swiss growth and reduced haven pressures against the Euro and Pound.
- The USD/CHF pair has depreciated, halting its three-day winning streak despite ongoing hawkish sentiment surrounding the Federal Reserve's policy outlook.
- A Reuters poll showed that all 35 economists expect the SNB to hold its policy rate at 0% on September 24.
- The Swiss franc has regained some ground, with traders likely booking profits following a one-sided rally from near the 0.8000 psychological mark in mid-August.
- At the time of writing, USD/CHF trades around 0.8209, falling for a third straight day as attention shifts to the SNB's policy decision on Thursday.
What's still developing
- "The SNB does not engage in any manipulation of the Swiss franc," it said in a statement.
- The SNB had remained on the sidelines for much of the period, only stepping up interventions in April 2025 to stem the franc's appreciation after President Donald Trump unveiled a barrage of global tariffs.
- Know more. ) The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies today.
- The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.
- The Swiss National Bank (SNB) Governing Board decides the appropriate level of its policy rate according to its price stability objective.