Hiking by the Swiss National Bank (SNB) should reduce the US dollar's momentum. Subsequently, economists at UBS have lowered their USD/CHF forecasts.

SNB’s unexpected hike to lead to a stronger franc against the dollar

“The SNB surprised markets with a 50 bps rate hike and announced its intention to take further action to keep inflation expectations well anchored. While the SNB is still well behind the US, we expect this unexpected hike to lead to a stronger franc against the dollar.” 

“We recently lowered our USD/CHF forecasts to 0.94 for end-September, 0.93 for end-December, 0.91 for end-March 2023, and 0.88 for end-June 2023 (from 0.98, 0.96, 0.94, and 0.92, respectively).”