USD/CHF rises as SNB sight deposits surge to CHF 460.7bn

USD/CHF has gained momentum following the Swiss National Bank's latest sight deposit data, which showed a significant increase to CHF 460.7 billion from CHF 442.5 billion in the previous period. The CHF 18.2 billion jump in total sight deposits suggests increased SNB intervention to weaken the Swiss franc, with foreign sight deposits rising notably while domestic deposits fell to CHF 425.8 billion from CHF 430.0 billion. This shift indicates the SNB is actively managing franc strength through foreign exchange operations, potentially to support Swiss exports and combat deflationary pressures. The data reinforces market expectations of continued SNB dovishness, especially after their recent rate cuts. For traders, this development supports a bearish CHF outlook, with USD/CHF likely to find support near 0.8950 and potential resistance at 0.9050. The widening interest rate differential between the Fed and SNB further favors USD strength against CHF.