investingLive European FX news wrap: SNB keeps rates unchanged, sounds more optimistic

The Swiss National Bank (SNB) decided to keep interest rates unchanged at the expected 0.00% and slightly downgraded inflation forecasts for 2026 and 2027. Chairman Schlegel downplayed disappointing inflation readings, emphasizing that inflation is expected to pick up gradually in the coming months due to monetary and fiscal policies. The outlook improved with the recent decrease of US tariffs on Swiss goods to 15%. Following this, the Swiss Franc remained mostly unchanged until a broad USD weakness led to a break below the key support level around 0.7980 for USDCHF. The US dollar continues to weaken following dovish remarks from Fed Chair Powell, who downplayed inflation risks in favor of emphasizing the labor market. US equities are recovering from post-FOMC losses, while US Treasury yields remain near the day's lows, supporting gold and silver. In the American session, initial Jobless Claims are expected at 220K. The labor market continues to reflect a 'low firing, low hiring' scenario, which poses challenges for the Fed as it attempts to stimulate demand without triggering inflation.