News report 💱 Forex 🌍 GLOBAL

Swiss Franc Slips to 0.8395 as US Dollar Hits 19-Month High

The Swiss Franc faces broad-based weakness as the SNB holds rates at 0% while the US Dollar rallies to 19-month highs on firming expectations for further Federal Reserve interest rate hikes.

📅 November 13, 2026 🕐 1 min read

3 assets impacted (Forex). Net bias: 2 Bullish, 1 Bearish, 0 Neutral. Strongest signal: USD/CHF ↑ 6/10 (80% confidence).

📊 Affected Assets (3)

USD/CHF

Bullish 🤖 80%

📅 Short-term 🌍 GLOBAL · Explicit

The pair is around 0.8395, near levels last seen in May 2025, and has gained more than 2% this week. Firm Fed hike bets (fully priced 25 bps in December, possible 50 bps) versus the SNB's 0% policy rate keep the yield differential widening in USD's favour, pointing to continued USD/CHF strength.

Catalysts

▲ Fed officials (Daly, Goolsbee, Logan) backing further rate hikes; December hike fully priced, target range to 4.00%-4.25%
▲ October CPI rose 0.4% MoM and core CPI came in at 0.3%, the level Waller said could justify a 50 bps hike

Risk Factors

▼ Monthly US producer prices rose less than expected, which could temper hawkish pricing
▼ The SNB can intervene to weaken CHF, but during high energy inflation it tends to refrain, leaving scope for a CHF rebound if Fed bets fade

CHF

Bearish 🤖 80%

📅 Short-term 🌍 CH · Explicit

The Franc is the worst-performing major currency this week, falling 2.46% against the USD and 1.39%-1.82% against EUR, GBP, JPY, CAD, AUD and NZD. With the SNB at 0% while the Fed, ECB, BoC and BoE have raised rates and signal more, low-yielding CHF looks set to stay under pressure.

Catalysts

▼ SNB policy rate held at 0%, one of the lowest among major economies, with inflation inside the 0%-2% range
▼ Rising expectations of further hikes in the US and elsewhere (Fed hike fully priced for December)

Risk Factors

▲ Monthly US producer prices rose less than expected, which could soften the dollar rally
▲ A sharp reversal in Fed rate-hike expectations would hit the low-yielding Franc's attractiveness less directly

USD

Bullish 🤖 75%

📅 Short-term 🌍 US · Explicit

The Dollar Index trades near 103.40, its highest level since April 2025, after hawkish remarks from Daly, Goolsbee and Logan and October CPI at 0.4% MoM. Markets fully price a 25 bps December hike to 4.00%-4.25% and even a small chance of 50 bps, supporting further Dollar strength.

Catalysts

▲ CME FedWatch shows a December 25 bps hike fully priced, with a small chance of 50 bps after core CPI hit 0.3%
▲ Annual PPI inflation climbed to 6.5%, keeping inflation above the Fed's 2% target

Risk Factors

▼ Monthly producer prices rose less than expected, a softer inflation signal
▼ The Dollar has already risen to a 19-month high, leaving limited room before positioning gets stretched

🧭 Full analysis of these assets

🎯 Key Takeaways

The Swiss Franc fell 2.46% against the US Dollar this week, with USD/CHF trading near 0.8395.
The US Dollar Index reached 103.40, marking its highest level since April 2025.
Traders have fully priced in a 25-basis-point Fed rate hike for December, targeting a range of 4.00%-4.25%.
Annual US PPI inflation climbed to 6.5%, while October CPI rose 0.4% month-over-month.

📝 Executive Summary

The Swiss Franc is the week's worst-performing major currency, falling over 2% against the US Dollar as the SNB maintains a 0% policy rate. In contrast, the US Dollar Index has climbed to 103.40, a 19-month high, driven by hawkish Federal Reserve rhetoric and expectations of a December rate hike to a 4.00%-4.25% target range.

❓ FAQ

USD/CHF · Why is USD/CHF rising?

Traders have ramped up bets on further Fed rate hikes after hawkish comments from Fed officials and October inflation data, while the Swiss National Bank keeps its policy rate at 0%, making the Franc less attractive. The pair is up more than 2% this week to around 0.8395.

USD/CHF · Could the SNB stop the Franc's fall?

The SNB has a history of intervening to prevent the Franc from appreciating too much, but during episodes of high inflation it refrains from intervention because a weaker Franc makes energy imports cheaper. Swiss inflation remains within the SNB's 0%-2% range, so little policy change is expected soon.

CHF · Why is the Swiss Franc so weak right now?

The Franc is the worst-performing major currency this week because the Swiss National Bank keeps its policy rate at 0% while other central banks, especially the Fed, are raising or signalling further rate hikes. Low yields make the Franc less attractive, and broad US Dollar strength adds to the pressure.

CHF · What would make the Franc recover?

A shift toward higher Swiss rates or weaker Fed hike expectations would help. Swiss inflation has picked up but remains within the SNB's 0%-2% target range, giving policymakers little reason to raise rates, while traders fully price a Fed hike in December.

USD · What is driving the Dollar higher?

Hawkish remarks from several Fed officials this week plus October CPI rising 0.4% MoM and annual PPI inflation at 6.5% have led traders to fully price in a 25 basis-point rate hike in December, with even a small chance of a 50 bps move. The Dollar Index is near 103.40, its highest since April 2025.

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