With central banks having already said their piece, seasonal, valuation and positioning still looks favorable for the USD. On these measures, the CHF looks vulnerable to a reversal, in the view of economists at TD Securities.

CHF could be a major laggard in the coming weeks

“The CHF is the most overloved currency on our positioning dashboard. It also tracks modestly rich to the USD.”

“We note that the SNB has increased sight deposit activity since mid-October, which signals their discomfort of letting the CHF appreciate further.”

 “With the major central banks from the Fed, to the ECB and to some extent the BoE largely having said their piece, the CHF could be a major laggard in the coming weeks as the circuit takes a backseat.”