USD/CHF steady as SNB expected to avoid negative rates at Thursday meeting

USD/CHF trades flat around 0.8450 ahead of Thursday's Swiss National Bank policy decision, the only major central bank meeting scheduled this week. Market consensus strongly expects the SNB to maintain its current 1.50% policy rate, steering clear of negative territory despite persistent Swiss franc strength. The SNB has been navigating between supporting exports through a weaker franc and controlling imported inflation. Recent Swiss CPI data showing inflation at 1.1% year-over-year provides the central bank room to hold steady without immediate pressure for aggressive action. Currency strategists note the SNB's reluctance to return to negative rates reflects confidence in current monetary settings. Technical analysis shows USD/CHF consolidating between 0.8420 support and 0.8480 resistance. A hawkish surprise could push the pair toward 0.8500, while any dovish tilt might test support levels. Traders are positioning defensively ahead of the announcement, with implied volatility remaining subdued.