- USD/CHF edges lower even though the US Dollar holds ground ahead of US Trump’s inauguration ceremony.
- Traders have raised Fed dovish bets after surprisingly soft annual US CPI reading for December.
- The SNB is expected to continue reducing interest rates to avoid risks of inflation remaining lower.
The USD/CHF pair edges lower to near the round-level support of 0.9100 in Friday’s European session. The Swiss Franc pair falls marginally as the Swiss Franc (CHF) performs strongly against its major peers even though market participants expect the Swiss National Bank (SNB) to continue easing the monetary policy further.
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 Japanese Yen.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.03% | 0.29% | 0.36% | 0.11% | 0.10% | 0.15% | 0.00% | |
EUR | -0.03% | 0.26% | 0.34% | 0.09% | 0.07% | 0.14% | -0.02% | |
GBP | -0.29% | -0.26% | 0.04% | -0.18% | -0.19% | -0.13% | -0.29% | |
JPY | -0.36% | -0.34% | -0.04% | -0.22% | -0.24% | -0.19% | -0.34% | |
CAD | -0.11% | -0.09% | 0.18% | 0.22% | -0.02% | 0.05% | -0.11% | |
AUD | -0.10% | -0.07% | 0.19% | 0.24% | 0.02% | 0.06% | -0.09% | |
NZD | -0.15% | -0.14% | 0.13% | 0.19% | -0.05% | -0.06% | -0.15% | |
CHF | -0.01% | 0.02% | 0.29% | 0.34% | 0.11% | 0.09% | 0.15% |
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).
Growing risks of Swiss inflation undershooting the SNB’s target have accelerated, resulting in the need for more interest rate cuts. The SNB has already reduced its key borrowing rates to 0.5%.
Meanwhile, the US Dollar (USD) gains as investors are cautious ahead of President-elect Donald Trump’s swearing-in ceremony on Monday. Investors expect Trump to announce economic policies, such as higher tariffs and lower taxes, soon after returning to the White House. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, ticks higher to near 109.15.
The Greenback remains firm even though an unexpected deceleration in the core Consumer Price Index (CPI) data for December has forced traders to raise Federal Reserve (Fed) dovish bets.
USD/CHF is on track to revisit its 15-month high, around 0.9200. The outlook of the Swiss Franc pair remains firm as the 20-week Exponential Moving Average (EMA) near 0.8900 is sloping higher.
The 14-week Relative Strength Index (RSI) oscillates in the bullish range of 60.00-80.00, suggesting a strong upside momentum.
For a fresh upside toward the round-level resistance of 0.9300 and the 16 March 2023 high of 0.9342, the asset needs to break decisively above the October 2023 high of 0.9244.
On the flip side, a downside move below the psychological support of 0.9000 would drag the asset towards the November 22 high of 0.8958, followed by the December 16 low of 0.8900.
USD/CHF weekly chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

Gold price jumps to fresh record high above $3,200 on US-China tariff war
Gold price sits at all-time highs of $3,219 in the Asian session on Friday. The weakening of the US Dollar and escalating trade war between the US and China provide some support to traditional safe haven asset Gold price amid increased dovish Fed expectations.

USD/JPY recovers losses in sync with US Dollar, retakes 143.50
USD/JPY is trimming losses to retest 143.50 in Asian trading hours on Friday, having tested levels under 143.00. The pair is tracking the US Dollar price action amid persistent trade jitters and US recession fears. The Fed-BoJ divergent policy expectations support the Japanese Yen, keep the weight intact on the pair.

AUD/USD consolidates weekly gains near 0.6250 despite trade tensions
AUD/USD consolidates weekly gains near 0.6250 in Asian trading on Friday. The pair capitalizes on sustained US Dollar weakness even as risk aversion remains at full steam on deepening US-China trade war. The White House confirmed on Thursdayt that the cumulative US tariffs on Chinese goods have risen to 145%.

Can Trump's tariff pause and declining inflation keep Bitcoin afloat? Experts weigh in
Bitcoin dived below $80,000 on Thursday despite US Consumer Price Index data coming in lower than expected and President Donald Trump's 90-day reciprocal tariffs pause on 75 countries.

Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.