USD/CHF Price Forecast: US Dollar Continues to Grind to the Upside

from Daily Forex. This is Christopher Lewis taking a look at the US dollar against the Swiss Frank. The US dollar has rallied against the Swiss Frank again during the trading session here on Thursday as rates continue to rise slightly and therefore it pays you to hold dollars against Swiss Franks and this makes it a very easy carry trade. Nonetheless, this is a market that I think ultimately will be more of a buy the dip type of setup. It will be a grind. It won't be something that is explosive, at least not my estimation. And short-term pullbacks, I do think, will continue to attract a lot of attention with the Swiss National Bank having no interest whatsoever in trying to raise rates. The Federal Reserve probably will by the end of the year. The FOMC meeting minutes that were released yesterday did suggest that several members believe that we need a second interest rate hike from the last um move that we just had at the recent meeting. The question is whether or not it will happen in October, December, but nonetheless against the Swiss Frank itself, it's doing quite well. This is not really a concern as to whether or not it is the October meeting or December. It just seems to be a known quantity. And even if they didn't raise rates in America, the differential is so wide with the Swiss National Bank working against raising rates that it makes no sense whatsoever shorting this pair unless there is a run to the Swiss Frank for safety. It seems as if the market is more worried about getting paid than safety regardless of all of the chaos going on around the world. So I believe that this is a slow and steady bullish market.