In what was billed to be a one and done case for the SNB, they decided to stop hiking rates earlier than anticipated. I mean perhaps it makes sense when you consider their status when viewing the inflation rankings among major economies:


*Japan data to be released on 22 September

And essentially, as the Fed and ECB also already having communicated their respective pauses, the SNB has some guideline to work with already in managing market expectations from hereon.

But either way, it is weighing on the Swiss franc as we see USD/CHF rise to its highest levels since June:

USDCHF D1 21-09
USD/CHF daily chart

We are seeing USD/CHF now rise up to 0.9060 levels and breaking above the 0.9000 mark. It was trading around 0.8990 prior to the SNB policy decision.

The break higher not only takes out the figure level but buyers are looking to keep above the 200-day moving average (blue line) of 0.9033 as well. That will shift the bias in the pair to being more bullish and tees up a test of the late May and early June highs at 0.9100 and just above that.

In turn, this should also continue to keep the dollar underpinned as it only serves to make the Fed's pause that much better-looking; in the sense that the gap between US rates and other major countries is still quite evident and favouring the dollar.