It is a fact that the Swiss Franc (CHF) has weakened considerably against a number of major currencies. The following currencies have made a golden cross formation against the Swiss franc since the beginning of 2026, including the Australian dollar, Canadian dollar, British pound, Euro, US dollar, New Zealand dollar, and the Chinese renminbi. A golden cross formation is about to form in the Japanese Yen. A golden cross formation occurs when the 50 day moving average crosses above the 200 day moving average.

This weakness is especially unusual in spite of numerous military conflicts and high government debt in a number of major economies. A possible reason for this weakness could well lie in the current interest rate policy of the Swiss National Bank SNB).

Switzerland's "official" annual inflation rate dropped to 0.4% in July 2026, down slightly from 0.5% in June. Consumer prices decreased by 0.1% month-over-month. Official updates and historical data sets are published by the Federal Statistical Office - FSO.

It is, however important to note that this measure of inflation does not include health insurance premiums which increased by an average of 4.4% in 2026. Why health insurance is not included in inflation calculations is an utter mystery.

The US dollar to Swiss franc interest rate differential is approximately 3.50% to 3.75%. This wide gap exists because the Federal Reserve maintains its benchmark target range at 3.50%–3.75%, while the Swiss National Bank keeps its policy rate at 0.00%. 

The market has quickly realized that cross currency trading, borrowing Swiss francs and buying foreign currencies is becoming highly profitable. This trend will probably become less attractive when the SNB decides to adjust interest rates to reflect a somewhat more realistic inflation.scenario.

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