The Swiss franc remained stable on Wednesday, with USD/CHF trading at 0.8838, a slight decrease of 0.04% for the day.
Investors are eagerly awaiting the rate decision from the Swiss National Bank, scheduled for Thursday. The SNB surprised the markets during its last meeting in March by cutting rates by a quarter-point to 1.50%, becoming the first major central bank to do so this year. This resulted in a 1.2% drop in the Swiss franc against the US dollar, but the currency has since recovered.
There is uncertainty surrounding whether the SNB will cut rates again, with economists divided and money markets lowering expectations from 80% to 60%. While inflation has been stable and growth steady, weak exports and a strong Swiss franc could push the SNB towards a rate cut to boost exports.
This upcoming SNB meeting is expected to bring volatility to the Swiss franc on Thursday.
In terms of technical analysis, USD/CHF has support levels at 0.8809 and 0.8777, with resistance at 0.8860 and 0.8892.
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