USD Extends Gains as SNB, BoE Hold Rates Steady; Fed Hawkish Bias Lifts Dollar

The US dollar extended its rally to the highest level since May 2025, driven by increased Fed rate hike expectations following a hawkish dot plot revision. The Bank of England held its bank rate unchanged at 3.75% as expected at its June meeting, while the Swiss National Bank maintained its key policy rate at 0%, also in line with consensus. SNB Chairman Schlegel notably avoided addressing changes in language regarding FX intervention, adding ambiguity to the franc outlook. Gold retreated to close the gap formed after the Fed's hawkish shift, with tightening bias capping upside potential. In the UK, April ILO unemployment data added to the macro backdrop for GBP traders. Bitcoin also drew attention as the $61,775 level emerged as a key technical threshold. Near-term, the dollar's trajectory hinges on incoming US data and further Fed commentary. Traders should monitor EUR/USD and GBP/USD for potential breakdowns as dollar strength persists, while USD/CHF may test higher levels if SNB intervention rhetoric remains muted.