The Swiss National Bank (SNB) decided to keep its policy rate unchanged at 0% during its June meeting, a move that was widely anticipated by market participants [1]. In its policy statement, the SNB revised its inflation forecasts upward, now expecting inflation to reach 0.6% in 2027 and 0.7% in 2028, compared to previous projections of 0.5% and 0.6%, respectively [1]. The central bank maintained its GDP growth forecast for 2026 at around 1% [1]. The SNB emphasized its commitment to monitoring economic developments and adjusting monetary policy as needed to ensure price stability, noting that global inflation is expected to remain elevated in the coming quarters due to higher raw material prices, while global economic growth is likely to be more moderate in the short term [1].
Following the SNB's announcement, the Swiss Franc (CHF) edged lower, pushing the USD/CHF currency pair back above the 0.8000 psychological level, although a generally weaker US Dollar kept the pair below its highest point since early April [1]. Technical analysis indicates that USD/CHF maintains a bullish near-term bias, with the Relative Strength Index (RSI) near 62 and a positive MACD reading, suggesting continued underlying demand for the pair [1]. Initial support is identified at the 200-period EMA at 0.7957, with a daily close below this level potentially weakening the bullish outlook [1].
Market focus is now shifting to the SNB's post-meeting press conference, where comments from Chairman Martin Schlegel and Governing Board Members could provide further direction for the Swiss Franc [1]. According to a currency performance table, the Swiss Franc was strongest against the Canadian Dollar on the day of the announcement [1].
In the broader context, the US Dollar rallied on the back of a hawkish Federal Reserve policy statement, gaining nearly 1% and reaching its highest level since late March above 100.50 on the USD Index [3]. The US Dollar was the strongest against the Canadian Dollar this week, while the Swiss Franc weakened against the US Dollar by 0.28% [3]. Wall Street's main indexes experienced heavy losses midweek, and the 10-year US Treasury yield rose by 1% to 4.5% [3].
No forward-looking statements or analyst opinions specific to the SNB decision were provided beyond the SNB's own guidance to remain vigilant and adjust policy as necessary [1].
CONCLUSION
The SNB's decision to keep rates unchanged at 0% and its upward revision of inflation forecasts led to a modest weakening of the Swiss Franc, with USD/CHF maintaining a bullish technical outlook. Market participants are now awaiting further guidance from the SNB's leadership, while the broader market context remains influenced by a stronger US Dollar and ongoing global inflation concerns.