The SNB is facing fresh deflation risks, and markets are pricing in a high probability of another 25bps rate cut this month with talk of a potential return to negative rates later this year. While the US dollar is trying to bounce, the franc’s strength is becoming a policy headache. A short USD/CHF position aligns with the view that the SNB will act more aggressively, while the USD's rebound remains shaky ahead of NFP. Look for re-entry opportunities near 0.9000–0.9050 if price bounces.

SHORT USDCHF

Jun 05 2025