USD/CHF loses ground due to the improved risk appetite on Monday. Fed is expected to maintain its current interest rate range of 5.25%–5.5% in June. SNB Chairman Thomas Jordan stated that the central bank is prepared to lower interest rates again if deemed necessary. The US Dollar depreciates, possibly reflecting a shift toward a risk-on sentiment, which undermines the USD/CHF pair. However, market analysts expect the US Federal Reserve to maintain the current interest rate range of 5.25%–5.
In March, the SNB surprised markets by lowering its main policy rate by 0.25 percentage points to 1.5%. Chairman Jordan highlighted the SNB's success in combating inflation but cautioned that uncertainty remains high and shocks can arise unexpectedly. He emphasized the importance of maintaining focus on price stability and warned against calls from critics to broaden the SNB's mandate, labeling such demands as dangerous.