USD/CHF stays firm above 0.7900, supported by the Federal Reserve’s hawkish stance.

USD/CHF climbs as the US Dollar rebounds following the Fed’s decision to hold rates while signaling a more hawkish outlook. Morgan Stanley now anticipates no rate cuts this year, scrapping its previous expectations for reductions in September and December. Meanwhile, Switzerland’s March KOF Leading Indicator is due for release later in the day.

USD/CHF posts a third straight day of gains, hovering near 0.7920 in Thursday’s Asian session. The pair is supported by a rebound in the US Dollar, which remains firm after the Federal Reserve left interest rates unchanged but adopted a more hawkish tone amid ongoing inflation concerns.

Morgan Stanley has revised its outlook, now expecting no Fed rate cuts this year, reversing earlier projections for two 25-basis-point reductions in September and December. The shift reflects persistent inflation and signs of continued economic strength.

The Federal Open Market Committee (FOMC) voted 8–4 to keep rates within the 3.5%–3.75% range, marking the highest level of dissent since October 1992. Policymakers noted that inflation remains elevated, partly driven by rising global energy prices.

Safe-haven demand has also lent support to the Greenback. US President Donald Trump stated that the naval blockade on Iran will remain in place until a nuclear agreement is reached, rejecting calls to reopen key routes. Iran responded with warnings of retaliation, accusing Washington of using coercive tactics.

Meanwhile, Swiss data showed a slight improvement in sentiment, with the ZEW Survey Expectations rising to -30.3 in April from -35.0 in March. The March KOF Leading Indicator is scheduled for release later in the day.