USD/CHF tests 0.90 as SNB-Fed policy divergence widens

USD/CHF approaches the psychologically important 0.90000 level as diverging monetary policies between the Swiss National Bank and Federal Reserve drive the pair higher. The Swiss franc weakens amid expectations that the SNB will maintain its accommodative stance with only 11 basis points of cuts priced by year-end, while the Fed shows more hawkish positioning. Recent US dollar strength, supported by resilient economic data and higher yield differentials, continues to pressure the franc despite its traditional safe-haven status. Technical analysis reveals USD/CHF trading near multi-month highs, with the 0.90000 level representing a critical resistance point that could trigger further gains if breached. Market participants are closely monitoring SNB communications for any shift in policy stance that could alter the current dynamics. The widening interest rate differential between US and Swiss assets makes carry trades more attractive, potentially adding to franc selling pressure in the near term.