FX.co ★ Swiss Franc Holds Near 2011-Highs

The Swiss franc dipped slightly to approximately 0.795 per USD, remaining near levels unseen since 2011. This movement was influenced by heightened geopolitical tensions following the U.S. operation that resulted in the capture of Venezuelan President Nicolas Maduro over the weekend. The global economic landscape remains uncertain due to trade policies from the Trump administration, coupled with anticipated further rate cuts, bolstering demand for safe-haven assets. Market participants are now turning their attention to the upcoming domestic inflation report, scheduled for release on January 8th, to gain insights into Swiss National Bank (SNB) policy directions. Forecasts suggest a 0.1% month-on-month decline in the Consumer Price Index (CPI), with only a 0.1% year-on-year increase anticipated for December. In December, the SNB kept rates steady at 0% in response to prevailing deflationary pressures, with most analysts predicting no rate changes through 2026. Simultaneously, a new Purchasing Managers' Index (PMI) survey revealed a sharper-than-expected contraction in Swiss manufacturing activity, which plummeted to a seven-month low in December.