Swiss Franc weakens vs Dollar, Euro as SNB gets relief

The Swiss Franc loses ground against the US Dollar and the euro on Monday as risk appetite improves amid the start of US-Iran talks, which were deemed positive by US Vice President JD Vance. Also, a hawkish tilt by the Federal Reserve and the Swiss National Bank (SNB), which is ready to weaken the Franc, keeps the Swissie pressured throughout the day.

Swissie falls as risk appetite improves and policy pressure builds

On June 17, the Fed held its last monetary policy meeting, deciding to keep rates unchanged but hinting that nearly half of its members favour further tightening, spurred by the jump in energy prices due to the Middle East conflict. Although negotiations are ongoing, the impact pushed inflation above the 3% threshold.

Consequently, the newly appointed Fed Chair, Kevin Warsh, reiterated the central bank’s commitment to price stability, making it a priority for the US institution.

This drove the USD/CHF higher, along with the SNB’s stance, which revealed that it is ready to intervene in foreign exchange markets if the CHF appreciates sharply.

The SNB’s decision was taken last week, when it kept rates at 0% and hinted that it is willing to act against a “rapid and excessive appreciation” of the Franc, which makes Swiss exports more expensive in foreign currencies.

USD/CHF Technical Analysis

The USD/CHF daily chart shows the pair remains upward-biased after reaching the invested head-and-shoulders pattern objective of 0.8042, poised to clear 0.8100 as it ends the day near 0.8090. A breach of the latter will expose the 0.8100 mark, then the August 1, 2025, high at 0.8172, and finally 0.8200.

EUR/CHF Technical Analysis

The EUR/CHF cross-pair is also bullish-biased after clearing the key 200-day Simple Moving Average (SMA) at 0.9223, which opened the door for further upside to two-month highs at 0.9266. A breach of the latter will expose the January 21 swing high of 0.9307, followed by the year-to-date (YTD) high of 0.9349.