Swiss Franc pressured by tariffs and steady SNB rate outlook

The Swiss franc has come under selling pressure as global trade tensions escalate and the Swiss National Bank is seen maintaining a cautious stance.

According to Commerzbank analyst Michael Pfister, recent press reports suggesting the SNB could keep its policy rate unchanged through early 2028, if accurate, would imply a much longer pause than markets currently anticipate. Market participants have been gradually scaling back rate hike bets, but pricing still reflects some tightening expectations.

Combined with the negative impact of trade tariffs on Switzerland's export-oriented economy, the franc is likely to remain on the back foot.