Swiss Franc Hits 16-Month Lows as USD/CHF Extends Winning Streak

The Swiss Franc (CHF) continues its downward trend, hitting fresh 16-month lows of 0.8367 in USD/CHF trading on Thursday.

This marks the seventh consecutive day that USD/CHF has appreciated, with investor sentiment weakening in September contributing to the CHF's decline.

The Swiss National Bank (SNB) kept its policy rate at 0% in its third quarterly monetary policy assessment on September 24, noting that medium-term inflationary pressure had increased slightly since June and reaffirming its readiness to intervene in the foreign exchange market as necessary.

However, the US Dollar's (USD) upside momentum may be limited due to easing Federal Reserve rate hike expectations following softer-than-expected inflation data released on Wednesday. The CME FedWatch Tool shows that markets now price in roughly a 38% chance of a Fed rate hike in October, down from nearly 51% prior to the PCE release.