The US dollar continued to weaken against the Swiss franc, with USD/CHF sliding toward 0.8950, as persistent bearish sentiment weighed on the pair. Softer US economic data and speculation about a potential shift in Federal Reserve policy have fueled downside pressure, keeping the dollar on the defensive.
The US dollar’s decline comes amid growing expectations that the Fed may slow its tightening cycle, with investors reassessing the likelihood of prolonged higher interest rates. Recent US reports have signaled moderating inflation and economic activity, increasing speculation that the central bank could pivot toward easing later this year. As a result, the greenback has lost ground against the safe-haven Swiss franc, which remains resilient amid global uncertainty.
USD/CHF 1-D Chart as of February 24th, 2025 (Source: TradingView)
Meanwhile, the Swiss National Bank (SNB) has maintained a cautious stance, signaling that further policy moves will depend on incoming data. Although the Swiss economy faces headwinds, the franc continues to benefit from its safe-haven appeal, particularly as global risk sentiment remains fragile.
From a technical perspective, USD/CHF is firmly in a downtrend, with 0.8950 acting as key support. A break below this level could accelerate losses, bringing the next downside target toward 0.8900. However, if the dollar finds support, the pair may attempt a recovery toward 0.9000, though upside remains limited unless sentiment shifts.
Traders are now watching US inflation data and Federal Reserve commentary, which could provide further direction for the pair. If inflation data reinforces expectations of a softer Fed stance, the dollar could weaken further, dragging USD/CHF below key support levels. However, stronger-than-expected readings may offer some relief, limiting near-term losses.
For now, bearish momentum remains dominant, with USD/CHF struggling to find support amid shifting monetary policy expectations. Unless the dollar regains strength, further downside remains likely in the sessions ahead.
