Location & Language

Zenfinex Global Limited regulated by the Financial Services Authority (FSA) of Seychelles (SD092)

Swiss National Bank Cuts Interest Rate to Zero… Will Negative Rates Return Soon?

The Swiss National Bank (SNB) decided yesterday to cut interest rates by 25 basis points, as expected, from 0.25% to 0.0%, marking the sixth consecutive cut. This makes the SNB the first central bank in the world to currently adopt a zero-interest rate policy. The question now arises: will the SNB return to a negative interest rate policy in the near future?

The SNB continues to pursue an accommodative monetary policy to support the Swiss economy, which is experiencing deflationary pressures. The Consumer Price Index (CPI) on an annual basis declined by 0.1% in May, lower than April’s reading of 0.0%, reaching its lowest level since March 2021. Similarly, the Producer Price Index (PPI) on an annual basis recorded a deflation of 0.7%, lower than the previous reading of -0.5%.

Meanwhile, the USD/CHF currency pair has seen a notable decline recently, reaching 0.8038 on April 21, 2025 — its lowest level in 14 years — and is currently trading near 0.8200. The pair has dropped around 10% year-to-date.

The strength of the Swiss franc versus the US dollar is largely attributed to its traditional role as a safe haven during periods of turmoil, particularly amid the recent trade tensions between the US and China. Despite an initial agreement between the two countries, uncertainty still clouds the outlook. Additionally, escalating geopolitical tensions between Israel and Iran, along with fears that the US and other nations may become involved in the conflict, are adding to the downward pressure on the USD/CHF pair. This comes as the US dollar index is also hovering at its lowest levels in three years.

Technical Indicators:

  • Relative Strength Index (RSI): Currently at 43, indicating continued bearish momentum for the USD/CHF pair.

Support and Resistance Levels:

  • Support levels: If the pivot point of 0.8182 is broken, the pair may target 0.8163, 0.8133, and 0.8114.
    • Resistance levels: If the pivot point is breached to the upside, the pair may target 0.8212, 0.8231, and 0.8261.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.

Back

Popular Posts

The Reserve Bank of Australia Holds Off on Rate Cuts Despite Market Expectations

Nasdaq 100 Hits Record Highs Despite Tariff Concerns

Overview of Key Economic Events from Last Week

Bitcoin Holds Above $100,000 Amid Strong Bullish Momentum

Lorem Ipsum

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Here are some related articles you may find interesting:

Market Insights​

July 9, 2025

The Reserve Bank of Australia Holds Off on Rate Cuts...

The Reserve Bank of Australia (RBA) kept interest rates unchanged at 3.85% during its meeting on July 8, 2025, defying market expectations of a 25-basis...

Market Insights​

July 8, 2025

Nasdaq 100 Hits Record Highs Despite Tariff Concerns

The Nasdaq 100 index recorded a new all-time high on Thursday, July 3, reaching 22,896 points. It has surged by approximately 38% from the low...

Market Insights​

July 7, 2025

Overview of Key Economic Events from Last Week

Last week featured several significant economic data releases globally. In the United States, indicators showed mixed results; the manufacturing PMI, non-farm payroll growth, and job...

Market Insights​

July 4, 2025

Bitcoin Holds Above $100,000 Amid Strong Bullish Momentum

Bitcoin prices have remained above the key psychological level of $100,000 since May 9, 2025, despite briefly dipping below it once on Sunday, June 22,...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

We’re Sorry

Access to tradetaurex.com
is unavailable in your region

tradetaurex.com is required to abide by global laws and therefore the information on this site is not directed at residents of the United States, Canada, North Korea, Iran, Myanmar, Belgium, Spain, France, Japan, South Korea or any particular countries and is not intended for distribution to, or use by, any person in an country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Live account Registration

1 Hour Trading Consultation

Chat on WhatsApp
This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.