USD/CHF faces downward pressure as SNB negative rate risk rises

USD/CHF has declined 0.2% to 0.8965 amid analysis suggesting potential SNB return to negative rates depending on Federal Reserve policy signals. The Swiss franc strengthened against major currencies as markets price in SNB's willingness to combat franc appreciation through aggressive monetary easing. EUR/CHF dropped to 0.9750, near multi-month lows, reflecting safe-haven flows into the franc. Current market positioning shows increased CHF long positions, with speculative accounts building bullish franc bets. The 2-year US-Swiss yield differential has narrowed to 165 basis points from 180bps last month, supporting franc strength. Technical indicators point to further USD/CHF weakness, with immediate support at 0.8940 (200-day MA) and resistance at 0.9000. A dovish Fed pivot could accelerate franc gains, potentially pushing USD/CHF toward 0.8900, while any SNB intervention might cap appreciation near current levels.