SNB Appears to "Retreat," Franc Potential for Further Strength
The Swiss Franc (CHF) is starting to regain traction as a safe haven asset, as geopolitical risks remain subdued and central banks appear to be increasingly less involved in the currency market. In such conditions, the CHF typically benefits—especially when global markets are prone to panic over headlines.
During the European session on Friday (February 6th), USD/CHF was hovering around 0.778 (around 0.7779–0.7784). This movement reflects a slight weakening of the dollar from the previous risk-off momentum, but on a weekly basis, USD/CHF still managed to post gains.
The main story comes from the Middle East: the US and Iran have begun negotiations in Oman, but Iran itself has warned that this may not be a quick solution. At the same time, reports also allude to a US military buildup in the region—a combination that makes it difficult to calm the market and keeps safe-haven demand alive.
From the Swiss perspective, the latest data shows that Swiss foreign currency reserves fell in January, which generally occurs due to valuation effects and market movements. But what's important for FX market players: when signs of central bank intervention are less aggressive, the opportunity for CHF strengthening could be more open.
Behind the scenes, the SNB also recently announced adjustments to sight deposit remuneration rules (effective March 1, 2026). While this isn't "direct intervention," operational measures like this are often interpreted by the market as a signal that the SNB is managing liquidity instruments—while allowing the exchange rate to move more naturally unless there is extreme volatility.
In conclusion: as long as geopolitics remains headline-driven and the SNB doesn't appear to be actively curbing CHF appreciation, the risk of USD/CHF falling (CHF strengthening) remains. Closely monitored is typically the 0.776–0.775 area as intraday support, while 0.780–0.782 serves as the closest resistance area should the dollar suddenly rebound.
Source: Newsmaker.id
